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Tesla Gigafactory Shanghai staff as it began Model 3 exports in October 2020. Image courtesy of Tesla.


Chinese Media: Tesla Sales Expected To Grow; US Media: Tesla Sees “Steep Sales Decline” In China

A couple of days after the U.S. media claimed that Tesla was having a steep sales decline in China, losing ground there, The Global Times, which is a newspaper under the auspices of the nation’s People’s Daily newspaper, said the opposite. Notably, this particular article foresees Tesla growing its sales over the course of the next two months, while the earlier articles were focused on Tesla’s July sales in China and were predicting doom and gloom. (The first month of a quarter always or almost always has considerably fewer sales than the last month of the quarter for Tesla in China.)

The Global Times noted that Tesla’s registrations in China for this month and next month are expected to grow and set a new monthly record of over 30,000 units despite the low numbers of July. Cui Dongshu, secretary-general of the China Passenger Car Association, shared thoughts as to why Tesla saw low registrations in July. Hint, it’s not about lack of demand. In fact, Cui pointed out that the demand for Tesla in China is huge.

“Tesla’s sales drop in the Chinese market was because it needs to ensure adequate supplies abroad where the demand was huge.”

That’s what we said.

Cui added that Tesla needs to balance demand from both China and overseas in order to maximize its global sales volume. Tesla recently defined Giga Shanghai as its main export center. However, this doesn’t mean that the Chinese market isn’t important to Tesla. Cui noted that this is Tesla’s most important market in the world and that sales are expected to far surpass those of July in August and September.

“Sales in China are expected to rebound sharply in August, greatly exceeding that of July, and could reach a record 30,000 by September.”

Related story: Tesla Giga Shanghai’s New Production Rate Is 450,000/Year

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