Tesla, Inc. TSLA has come out on top in China, one of its key markets.
What Happened: Tesla's Model Y SUV, which was launched in China in early 2021, has quickly risen in ranks, and unseated longtime leader Haval H6 manufactured by Great Wall Motors, the CnEVPost reported, citing data from the China Passenger Car Association.
Tesla led the overall SUV market, counting in ICE vehicles, by selling 74,681 cars in the first quarter. Warren Buffett-backed BYD Company Limited's BYDDY Song model came second with sales of 73,704 units and Haval 6 took the third spot with sales of 71,411 units.
Tesla sold 39,730 units of Model Y vehicles in March, more than tripling from a year ago and more than doubling from a month ago. BYD's Song, Changan's CS75 and Haval H6 took the next three positions, with sales of 26,723, 22,811 and 19,303 units, respectively.
Among sedans, Tesla Model 3 vehicle had a robust March after an anemic showing in the first two months of the year. The company sold 26,024 units of Model 3 sedans in March, second only to SAIC-General Motors Corporation GM-Wuling joint venture's Hongguang mini EV.
Why It's Important: The strong uptake of Tesla's vehicles bodes well for the company and is reflective of its strong competitive positioning. This data point is particularly important in the current supply-constrained and input cost inflationary environment.
Automakers in China had to suspend production due to the COVID-19 lockdowns in place. Domestic EV startup Nio, Inc. NIO announced over the weekend it is halting production due to COVID disruptions at its suppliers.
To take on the higher input prices, most EV makers have announced retail price increases. Tesla bumped up vehicle prices multiple times since the beginning of the year but has not apparently seen demand destruction due to the price hikes.
In premarket trading, Tesla shares were rising 0.48% to $980.63.
Photo: Courtesy of Tesla
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.