Tesla is nearing another record sales quarter for Chinese sales even in the face of increased competition. Per Reuters, Tesla is on track to sell more than 155,000 vehicles between April and June. This represents a 13 per cent increase from the first quarter of 2023.
However, it is not all roses for Tesla, as the company has seen its market shrink this quarter. In the first months, the company had 16 per cent, which is now near 13.7 per cent. Most of this is due to BYD and Aion gaining significant market share.
Managing Director at Automotive Foresight, Yale Zhang, had this to say:
Tesla has to sell into China’s lower tiered cities to seek further growth, but its direct sales model would be too costly to expand its sales network into hundreds of such cities. BYD, on the other hand, has a big advantage in those markets with dealerships.
We will find out the final sales numbers in the coming days, but by all accounts, Tesla had a big quarter. The question is, can they keep these sales numbers as BYD and others gain market share.
Per insiders, Tesla plans to revamp its Model 3 and Model Y to keep sales strong, but it might take full self-driving to come online to truly sure up sales for the future.