In September, Tesla’s Shanghai factory increased its shipments for the third consecutive month. The sales rebound over the past three months helped Tesla’s domestic vehicle sales reach a record high in the third quarter. According to preliminary data from the China Passenger Car Association, Tesla sold 88,321 domestic Model 3 and Model Y vehicles in September. This figure marks a 19.2% year-on-year increase and a 1.9% month-on-month rise. In the domestic market, Tesla’s sales exceeded 72,000 vehicles last month. This represents a 66% year-on-year surge and the best monthly performance of the year.
In the third quarter, Tesla sold 249,135 electric vehicles in China. Strong sales in September and rebounds in July and August drove this growth. This marks Tesla’s first quarterly increase this year. It also surpasses the peak of 248,686 vehicles in the fourth quarter of 2023. Tesla set a new record.
Tesla’s strong sales in China benefit from government subsidies. At the end of July, the government doubled the subsidy for trading in old cars to 20,000 yuan (2830$). This move boosted the market for plug-in hybrid vehicles, especially entry-level electric cars and plug-in hybrids. Meanwhile, local competitors like Xpeng and NIO release cheaper models. Tesla expands its incentives for new cars to attract consumers. At the end of September, Tesla extended the 5-year 0% financing offer for Model 3 and Y until October 31. This offer, announced on July 1, originally ended on July 31 and faced three extensions. With the government’s economic stimulus plan launched at the end of September and the National Day holiday in early October, new car showrooms fill with people. Tesla’s sales in China are expected to remain strong through October.