Tesla Inc.’s China deliveries likely rose 15.3 per cent in July, reversing a slump for the US electric vehicle maker in Asia’s largest economy.
Deliveries of Model 3 and Model Y vehicles from Tesla’s Shanghai factory increased to 74,117 units last month, according to Bloomberg calculations based on preliminary data released by China’s Passenger Car Association on Friday. Shipments were down 24.2 per cent in June. Month-on-month, the July shipments were up 4.4 per cent.
The bump in China shipments is positive news for Elon Musk’s automaker after second-quarter earnings on July 25 missed analyst estimates for a fourth consecutive quarter. Investors were also disappointed by the company’s decision to push back an event showcasing robotaxi prototypes by about two months to October.
Tesla’s China figures were in contrast to those from some of the nation’s other automakers, with several posting steep month-on-month declines as consumer spending remains weak. Overall, EV and plug-in hybrid wholesale figures in July were estimated to have risen 29 per cent compared with July 2023, according to PCA.
Of the carmakers that have already reported monthly figures, Zeekr Intelligent Technology Holding Ltd., the EV brand of Geely Automobile Holdings Ltd., was hit hardest, announcing a 22 per cent drop in sales from June to 15,655 units.
A Zeekr spokesperson said that equipment checks and repairs along production lines are usually timed for the summer. Zeekr’s production lines are also being adjusted to make several new models, the spokesperson said, adding that a monthly run rate of 30,000 units for one of the months in the fourth quarter is still the goal.
Parent Geely reported a 9.2 per cent slump in July sales while Great Wall Motor Co.’s decreased 6.9 per cent.
The PCA said Friday that China’s new-energy passenger vehicle wholesales in July were estimated to have come in at 950,000 units, down 3 per cent month-on-month, amid slower economic growth and muted consumer spending.
Beijing has been trying to prop up EV sales, last month saying it will double the cash handout to trade in older cars as part of a wider 300 billion yuan ($41.4 billion) package to drive consumption.
BYD Co. continued its run as China’s best-selling car brand in July, although its passenger vehicle sales only inched 0.2 per cent higher to 340,799 units. While plug-in hybrid sales jumped to 210,799 units, thanks to discounting, pure battery EV sales fell to their lowest in five months.
Among China’s other three US-listed EV makers, Nio Inc., Xpeng Inc. and Li Auto Inc., the latter stood out, posting a 6.8 per cent increase in sales to 51,000 units, largely due to the popularity of its extended-range EVs.
