Earlier this month Tesla Inc TSLA reported record deliveries for the third quarter. New data out of China now shows more than half of the electric vehicle giant's deliveries for the quarter were rolled out of the Giga Shangahi production line.
Giga Shanghai Rocks: Tesla's wholesale sales in China were at a record 56,006 units in September, according to data published by the China Passenger Car Association. The metric was at 32,968 in July and 44,264 in August.
Cumulative wholesale sales for the three months ended September came at 133,238, which is about 55% of the company's global deliveries of 241,300 in the third quarter.
The numbers confirm Tesla CEO Elon Musk's statement at the annual shareholder meeting that Giga Shanghai, which commenced operation in Oct. 2019, now produces more cars than the company's flagship Fremont factory.
The Giga Shanghai manufactures both Model 3 and Model Y vehicles.
Related Link: Tesla Battery Supplier LG Energy Solutions To Go Public By Year-End: Report
Solid September Sales In China: September sales of 56,006 in China represented a 26.5% month-over-month increase and a 394% jump from the year-ago period.
The company exported 3,853 vehicles in the month, a marked slowdown from exports of 24,347 in July and 31,379 in August.
Musk had clarified in an earlier tweet that the company focuses on producing cars for exports in the first half of the quarter before shifting focus to cars meant for domestic sales.
Tesla's domestic sales in China came in at an impressive 52,153 in September, up sharply from the 12,855 units sold in August. For the third quarter, Tesla's China domestic sales stood at 73,629 units.
Tesla's September sales outperformed domestic rivals such as Nio Inc - ADR NIO, XPeng Inc - ADR XPEV and Li Auto Inc LI by a wide margin. September deliveries of Nio, XPeng and Li Auto stood at 10,628, 10,412 and 7,094 units, respectively.
Why It's Important: Tesla's numbers are commendable, given passenger car sales in China slid 17% year-over-year to 1.6 million vehicles in September.
"Selling 50k+ in the month for the key China region speaks to a huge trajectory that highlights our bull China thesis for Tesla going into the next few years," Wedbush analyst Daniel Ives said in a note Tuesday.
Despite the abounding competition in the EV space, Tesla continues to dominate market share even while battling through the chip shortage, the analyst said. The company is now seeing rebounding China demand after facing headwinds earlier this year, he added.
The Giga Shanghai is evolving as an export hub for Tesla. The margins for cars manufactured at this facility are higher than the Fremont plant. With the delay in the opening of the Giga Berlin, the Model Y vehicles sold in Europe are exported from the Shanghai plant.
TSLA Price Action: Tesla shares were 1.79% at $806.09 on Tuesday morning.
Photo: Teslay Model Y courtesy Tesla Inc
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
