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According to data released on Monday by the China Passenger Car Association (CPCA), Tesla Inc., the American automotive manufacturer (NASDAQ: TSLA), delivered 77,695 electric vehicles (EVs) manufactured in China during May. This figure represents a 2.4% increase compared to April.
Data reveals that Tesla experienced a substantial 142% increase in sales during May compared to the same month in 2022. In 2022, Tesla sold 32,165 vehicles in May, when its Shanghai factory operations were affected by COVID-19 containment measures. However, this year, despite the ongoing impact of containment measures, Tesla surpassed those challenges and achieved significantly higher sales figures for the month of May.
According to data from the China Passenger Car Association (CPCA), Chinese competitor BYD Co Ltd (OTC: BYDDF) witnessed a 14% year-on-year increase in sales during May. The company’s sales of its Dynasty and Ocean series of electric vehicles (EVs) and petrol-electric hybrid vehicles reached an impressive figure of 239,092 units for the month.
CPCA is scheduled to release more detailed car sales figures for May later this month.
In recent weeks, Tesla has been under intense focus in China, amid an unannounced, high-stakes visit from boss Elon Musk.
Musk wrapped up a two-day trip on Thursday that included talks with Chinese Vice Premier Ding Xuexiang on Wednesday in Beijing, a source told Reuters.
In a significant development, Elon Musk made his first visit to Beijing in three years after the reopening of borders. This visit comes at a crucial juncture for Tesla, as the company faces intensified competition from Chinese-made EV manufacturers. Additionally, there is uncertainty surrounding the expansion of Tesla’s largest production hub, the Shanghai plant.
He also met with foreign, commerce and industry ministers, and dined with Zeng Yuqun, chairman of battery supplier Contemporary Amperex Technology Co Ltd (CATL).
On Thursday, Musk visited Tesla’s Shanghai factory late on Wednesday and met with Chen Jining, the ruling party’s Shanghai secretary. Chen welcomed Tesla to increase investment and expand business in the city, according to a statement from the municipal government.
In mid-May, China’s market regulator revealed that Tesla is taking action resembling a product recall by issuing over-the-air software updates for more than 1.1 million vehicles. This initiative aims to address a braking issue identified on May 29.
Since May, Tesla has decided to raise prices in several countries, including China. This adjustment came after the initial price cuts triggered a price war, resulting in other international and local brands following suit by adjusting their prices.
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