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Tesla made-in-China Model 3 sales jump to record high

Tesla made-in-China Model 3 sales have reportedly jumped to a new record high in May, according to registration data.

The first quarter of 2020 was Tesla’s first full quarter of production at Gigafactory Shanghai, where it produced Model 3 vehicles for the Chinese market.

Tesla ended the quarter strong with just over 10,000 Model 3 deliveries in March, according to registration data released by the China Passenger Car Association (CPCA).

In April, sales fell to just 3,635 units.

Now the China Passenger Car Association (CPCA) is reporting that Tesla delivered a record 11,095 made-in-China Model 3 vehicles in May.

Unlike the rest of the world, China’s auto market was quick to go back to growth after the pandemic was under control in the country.

Overall, vehicle sales in China rose 12% in May to 2.14 million units.

David Leggett, Automotive Analyst at GlobalData, commented on the news:

This is the second consecutive monthly rise for the Chinese vehicle market, as it rebounds from sharp declines in the first quarter caused by the COVID-19 coronavirus. China was first into the COVID-19 crisis and first out of it, so developments in China’s economy are being watched very closely.

With Tesla’s Fremont factory being closed for the first half of the second quarter, the automaker is going to heavily rely on its Chinese sales to mitigate the impact of the pandemic on its Q2 2020 financial results.

But while its revenue is skyrocketing in China, its expenses are also rising.

Tesla has been planning to significantly expand its Supercharger network in China in order to support the new volume of vehicles in its fleet.

Electrek’s Take

While May deliveries were strong for Tesla in China, June deliveries might actually be even greater.

Tesla only started delivering its new Long Range RWD Model 3 made at Gigafactory Shanghai toward the end of the month.

June should be the first full month of deliveries for this new version of the made-in-China Model 3, which I expect is going to be very popular.

At this point, I can see Tesla China contributing ~25,000 units to the quarter.

The automaker should still see a massive drop in deliveries overall, but its growth in China will definitely be useful this quarter.

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