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Tesla Model 3 Takes 23% Of Chinese EV Market In June

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Tesla Model 3 Takes 23% Of Chinese EV Market In June

After Tesla beat expectations with second-quarter deliveries, it's no surprise that Tesla's China division delivered an impressive number of cars.

Tesla sold 14,954 Model 3s made in China in June, up 35% from the previous month. This number makes up 23% of the total electric vehicles sold in China in the month. 

Although the Fremont factory was shut down for part of the second quarter, Tesla China was able to keep pumping out cars, as China brought the pandemic under control earlier than the U.S.  

It seems that Tesla built their second car manufacturing facility just in time, especially considering rising coronavirus case numbers in the U.S. that could potentially cause another shutdown of the Fremont factory. 

At the same time, the Shanghai Gigafactory is undergoing more construction to make room for Model Y production. 

With a large population of potential Tesla drivers China is a great market for the electric automaker.

Not only is the brand popular there, but the Chinese government offers great incentives to purchase electric vehicles, which Tesla qualifies for because their cars are now built in the country.

Tesla no longer qualifies for tax incentives in the United States after passing the milestone of 200,000 electric vehicles delivered in the fourth quarter of 2018. 

Benzinga's Take: China is a huge market that Tesla is just starting to tap into. Tesla vehicle purchases there will continue to grow, especially with the introduction of the made-in-China Model Y.

Add in Gigafactory Berlin, which will intially start with Model Y production — a higher- margin car than the high-volume Model 3 —and today's delivery numbers will most likely look quaint a year from now. 

Photo courtesy of Tesla. 

 

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Posted-In: China electric vehicles EVs Model 3News Retail Sales Global Tech Best of Benzinga

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