Tesla’s shipments from its Shanghai factory hit a more than one-year low due to a sales slowdown during the Lunar New Year holiday and increased price competition in the largest electric vehicle market.
The combined January-February shipments for China-manufactured Teslas reached 131,835 units, indicating a 6% year-on-year decrease. Despite this overall downturn, there was a surprising 25% YoY increase in domestic sales (Low margin). This contrasts sharply with a significant 31% plunge in export figures during the same period.
Of particular significance is Tesla’s Shanghai factory, which boasts an impressive annual production capacity of over 950,000 vehicles, making it the company’s largest facility globally. Despite the recent dip in sales, Tesla’s commitment to the Chinese market remains evident through its substantial production capabilities in the region, a factor that will likely play a pivotal role in shaping the company’s future performance and strategy.
In February, Tesla faced a setback in China as sales of its domestically produced cars declined for the second consecutive month. The China Passenger Car Association (CPCA) reported a notable 15.5% decrease in sales from January, amounting to 60,365 units. Furthermore, compared to the same period last year, the figures reflected an 18.87% YoY drop.
