Tesla reported a decline in sales for China-made vehicles last month, reflecting broader market challenges and internal production adjustments, according to data released by the China Passenger Car Association (CPCA).
In June, Tesla China sold a total of 71,007 vehicles, including both domestic sales and exports, marking a 2.16 percent decrease from May’s 72,573 units. Compared to June last year, the figures showed a more significant decline of 24.20 percent from 93,680 vehicles.
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For the second quarter of this year, Tesla China’s sales totaled 205,747 vehicles, down 16.77 percent year-on-year and 6.85 percent lower than the first quarter. In the first half of 2024, Tesla China’s cumulative sales reached 426,623 vehicles, reflecting a 10.47 percent decrease compared to the same period last year.
Tesla operates a manufacturing facility in Shanghai where it produces the popular Model 3 sedan and Model Y crossover. This facility serves both the local market and acts as an export hub.
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According to Tesla’s production strategy, the company focuses on exporting vehicles in the first half of the quarter and fulfilling local demand in the latter half.
Details on Tesla’s June sales in China and exports from its Shanghai factory have not yet been disclosed. However, recent reports indicated production adjustments at Tesla’s Shanghai plant, including a reduction in Model Y production by at least 20 percent from March to June.
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While Tesla has faced global layoffs, including significant cuts reported in China, recent developments suggest efforts to rehire employees, particularly in sales and service roles, to support operations and customer service.
In an effort to stimulate sales, Tesla China recently extended a zero percent interest loan incentive until July 31, following its expiration on June 30.
