Model 3

Tesla Seizes 23% of Electric Car Sales in China and Threatens to Puncture the Bubble of Local Companies

The construction in a record time of the Giga Shanghai factory, which began operating in December last year, is paying off. Today Tesla has managed to capture a large part of the sales of electric cars in China, the largest market for this type of vehicle in the world, dominating the competition with an iron fist.

During the second quarter of 2020, the Chinese market and Giga Shanghai became especially important to Tesla, since, for much of this period, the Fremont factory was closed due to the coronavirus pandemic. The Chinese market also experienced a rapid recovery after the pandemic, which played in favor of the American company.

Thus, in the second quarter, Tesla delivered some 30,000 units in China, which accounted for a third of its global sales. In other words, Giga Shanghai has acted as a lifeline for the company, which has maintained a healthy level of deliveries thanks to the momentum of the Chinese market.

According to data provided by the China Passenger Car Association, in June, the local market fell again; However, Tesla continued to improve its numbers, delivering a total of 15,000 units of Model 3. This upward trend shows us the unstoppable advance of the brand in a market that is not going through its best moment.

Sales of passenger cars fell by 6.5% during June, while sales of electric vehicles suffered an even more dramatic drop, reaching 35%. However, this situation has been exploited by Tesla to capture an astonishing 23% of the country’s electric vehicle market.

According to some experts, the success of Tesla could puncture the bubble that has emerged in recent years around the electric car in China. All since numerous startups dedicated to the development and manufacture of electric vehicles have been born in the heat of government subsidies. It is becoming increasingly difficult for them to raise funds in a market dominated by Tesla.

Leave a Reply

Your email address will not be published. Required fields are marked *