Tesla experienced a dip in its China-made vehicle sales in February 2024, with a 15.5% decrease from January, selling a total of 60,365 vehicles. This decline can be attributed primarily to the impact of the Chinese New Year holiday, which likely slowed production at Tesla’s Shanghai plant, as well as sales.
According to figures released on Monday by the China Passenger Car Association (CPCA), which includes both domestic sales and vehicles exported to other markets, sales also fell year-over-year (YoY), down 18.87% from 74,402 vehicles sold in February 2023.
Tesla’s Giga Shanghai, which boasts an annual production capacity exceeding 1,000,000 vehicles, serves as the company’s largest production base globally. It manufactures the popular Model 3 sedan and Model Y crossover, catering not only to the domestic Chinese market but also serving as the automaker’s primary export hub.
Giga Shanghai’s production cycle is centered around the company’s export strategy, focusing production in the first half of the quarter for exports, followed by prioritizing production for the local Chinese market and those closer to China in the second half.
However, the timing of the Chinese New Year in February, a period marked by widespread factory shutdowns and reduced consumer activity, significantly impacted Tesla’s production and sales momentum last month.
The detailed breakdown between local deliveries and exports should be announced later this week.
Likely in response to the lower sales in February, Tesla China has recently launched new incentives on the Model 3 and Model Y.
Tesla China February wholesale: 60,365 units
— Kelvin Yang (@KelvinYang7) March 4, 2024
(CPCA) pic.twitter.com/Ci1TZ7ktme
