Tesla’s Shanghai factory shipments trend upward in July

Deliveries of Model 3 and Y models from Tesla’s Shanghai plant rose to 74,117 units last month, according to Bloomberg calculations based on preliminary data released by China’s Passenger Car Association on Friday. Deliveries fell 24.2% in June. On a month-on-month basis, deliveries were up 4.4% in July.

The increase in deliveries to China is good news for Elon Musk’s automaker after its second-quarter results on July 25 missed analysts’ estimates for the fourth straight day. 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 data contrasted with those of some other automakers in the country, with several reporting sharp month-over-month declines as consumer spending remains weak. Overall, July’s wholesale sales estimate for electric vehicles and plug-in hybrids was down 29 percent from July 2023, according to the PCA.

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Among automakers that have already released monthly results, Zeekr Intelligent Technology Holding Ltd., the electric vehicle brand of Geely Automobile Holdings Ltd., posted the biggest losses, reporting a 22 percent drop in sales from June to 15,655 units.

A Zeekr spokesman said equipment inspections and repairs on production lines are typically scheduled for the summer. Zeekr’s production lines are also being adjusted to produce several new models, the spokesman said, adding that a monthly output of 30,000 units in one of the fourth-quarter months is still the goal.

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Parent company Geely reported a 9.2 percent drop in July sales, while Great Wall Motor Co. saw its sales drop 6.9 percent.

The PCA said Friday that China’s estimated wholesale sales of new passenger vehicles in July were 950,000 units, down 3% month-on-month, weighed down by slower economic growth and reduced consumer spending.

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Beijing has been trying to support sales of electric vehicles, announcing last month that it would double the amount of money it spends on older cars as part of a broader 300 billion yuan ($41.4 billion) package aimed at boosting consumption.

BYD Co. continued its streak as China’s top-selling car brand in July, though passenger vehicle sales rose only 0.2 percent to 340,799 units. While sales of plug-in hybrids rose to 210,799 units, buoyed by discounts, sales of battery-electric vehicles fell to a five-month low.

Of the three other U.S.-listed Chinese EV makers, Nio Inc., Xpeng Inc. and Li Auto Inc., the latter stood out, posting a 6.8% sales increase to 51,000 units, largely driven by the popularity of its extended-range electric vehicles.

Date first published: Aug 04, 2024, 08:50 AM IST