Tesla’s sales in China experienced a notable rebound in May. According to the China Passenger Car Association (CPCA), Tesla sold 72,573 units last month, marking a 16.7% increase from April’s 62,167 units.
The uptick in Tesla’s sales can be attributed to several factors. One of these is China’s new trade-in program, which offers consumers a one-time subsidy of up to ¥10,000 (C$1,890/US$1,380) for trading in their old vehicles. This initiative has boosted consumer interest in new, high-tech cars, benefiting not only Tesla but also its domestic competitors.
Tesla also had some customer incentive programs running in May, while likely boosted sales. These incentives included free Supercharging, and financing incentives like no down payment and 0% interest.
Despite the monthly growth, sales were still down 6.6% compared to May 2023.
Tesla’s production strategy in China has also seen adjustments. Production of the Model Y decreased by 33% year-over-year in April, with 33,610 vehicles produced. Reports from indicated that Tesla planned to cut Model Y production at Giga Shanghai by at least 20% between March and June. Tesla has not confirmed if these production cuts will extend into the second half of the year.
