Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Tesla's July sales of Chinese-made vehicles slide due to factory line upgrades

Published 08/08/2022, 10:14 PM
Updated 08/08/2022, 11:10 PM
© Reuters. FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo
TSLA
-

SHANGHAI (Reuters) -Tesla sold 28,217 Chinese-made vehicles in July, nearly two-thirds less than a month earlier as a scheduled upgrade to its factory lines in Shanghai disrupted production.

The U.S. carmaker exported 19,756 Model 3s and Model Ys from China last month, the China Passenger Car Association (CPCA)said. In June, it sold 78,906 vehicles and exported 968.

Tesla (NASDAQ:TSLA) China usually exports more cars at the beginning of a quarter while focusing more on domestic sales at the end.

Tesla suspended most of its production at the Shanghai plant in July due to an upgrade that aims to bring the factory's weekly output to around 22,000 units compared with levels of around 17,000 in June, according to internal memos seen by Reuters.

The output ramp-up at Tesla's most productive manufacturing hub comes after production losses during a two-month COVID lockdown in Shanghai hurt the company's profit margin in the second quarter.

China's overall passenger car sales in July jumped 20.1% from a year earlier to 1.84 million, the CPCA said.

Sales of electric cars accounted for 26.4% of the total in July and increased 117.3%, it added, with sales of plug-in hybrids outpacing pure electric cars.

The association now expects electric car sales for the whole year could reach 6 million units, higher than an earlier estimate of 5.5 million.

BYD led the EV players with 163,042 cars delivered in July, with plug-in hybrids accounting for more than half of its sales.

© Reuters. FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

Nio (NYSE:NIO), Xpeng (NYSE:XPEV) and Li Auto delivered 10,052, 11,524 and 10,422 vehicles, respectively.

Sales of conventional hybrid cars in July also increased 81% from a year ago, with Japan's Toyota Motor (NYSE:TM) Corp and Honda Motor Co Ltd leading the segment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.