According to data from the China Passenger Car Association (CPCA), U.S. automaker Tesla experienced a 2.4% increase in deliveries of China-made electric vehicles (EVs) in May compared to April. The company delivered a total of 77,695 EVs during the month. In comparison to May 2022, when production was impacted by COVID-19 containment measures, sales surged by an impressive 142%. During that period in 2022, Tesla’s factory in Shanghai, China, was still subject to restrictions.
Tesla’s Chinese competitor, BYD, also witnessed growth in May, with sales of its Dynasty and Ocean series of EVs and petrol-electric hybrid vehicles reaching 239,092 units. This represented a 14% increase compared to the previous month.
The CPCA is expected to release more detailed car sales figures for May later this month.
In recent weeks, Tesla has faced heightened scrutiny in China due to an unannounced visit by CEO Elon Musk. Musk concluded his two-day trip, which included discussions with Chinese Vice Premier Ding Xuexiang and meetings with various government officials and business leaders. The visit comes at a time when Tesla faces growing competition from domestic Chinese EV manufacturers and uncertainty surrounding the expansion of its Shanghai plant, which serves as its main production hub.
During his visit, Musk toured Tesla’s Shanghai factory and held discussions with Chen Jining, the ruling party’s Shanghai secretary. Chen expressed support for Tesla’s increased investment and expansion plans in the city.
In May, Tesla initiated a product recall of over 1.1 million vehicles in China to address a braking issue. The company is distributing over-the-air software updates to rectify the problem, as confirmed by China’s market regulator.
Additionally, Tesla has recently raised prices in several countries, including China, after earlier price cuts led to a price war among international and local brands. The move prompted other companies to follow suit and increase their prices as well.
