Tesla’s sales dropped significantly in China last month, but it was anticipated with the production stopping at the end of the month. It is now resuming.
China is Tesla’s most important market and the most important EV market in the world. For Tesla, any significant change in output out of Gigafactory Shanghai or sales in China will have a significant impact on its overall performance.
December was expected not to be Tesla’s best month, as it was reported that the automaker stopped production at the end of the month.
Today the numbers were released, and Tesla delivered 55,796 China-made electric vehicles in December, according to the China Passenger Car Association. That’s down 44% month-over-month, but more importantly, it is down 21% over the same period last year. And that’s during a year that Tesla significantly increased its production capacity at Gigafactory Shanghai.
In 2022, December was Tesla’s lowest production level since July.
The good news is that production has now resumed based on a drone flyover of Tesla Gigafactory Shanghai today:
However, there are some concerns for Tesla in China in 2023.
There have been some indications at the end of 2022 that Tesla was starting to have some demand issues in the country, despite the company’s best efforts to squash the rumors. It’s not helping the rumors that Tesla started 2023 by offering up to $1,450 in incentives in China for people taking delivery by February 28.
City Dwellers’s Take
Tesla investors should certainly keep an eye on Tesla’s performance in China because if the automaker doesn’t do well in China, it’s likely not going to do well overall.
Many factors could negatively affect Tesla’s performance in China in 2023, in addition to the broader EV market in the country.
We will keep a close eye on Tesla’s early performance in the country this year.
FTC: We use income earning auto affiliate links. More.
