Tesla is seeing major increases in sales in China, one of the world’s most competitive EV markets, even against a production slowdown. It’s also branching out its supply lines – and no longer sole-sourcing LFP batteries from one supplier in China for Mega Shanghai.
Uptick in Sales
Tesla has reported a notable rise in its wholesale figures in China for May 2024, achieving a total of 72,573 units sold. This marks a 16.74% increase from the previous month, highlighting a positive trajectory for Tesla in one of the world's most competitive markets. These figures were provided by the China Passenger Car Association (CPCA), which offers detailed and accurate information for China's automotive industry.
This surge in sales is particularly significant given the highly competitive landscape of the Chinese EV market. Clearly, Tesla's sales strategies and model lineup are resonating with Chinese consumers, despite fierce competition from local manufacturers. Several factors could be contributing to this rise, including Tesla's strong brand reputation in China, high product quality, competitive pricing strategies, and the increasing demand for electric vehicles in China.
Tesla has also hinted at China being an upcoming market for FSD, which could be another major driving factor.
New Battery Supplier
BYD’s battery manufacturing division – FinDreams, will now be supplying Tesla with battery cells for its Megafactory in Shanghai. This megafactory won’t be producing cars but will be producing Megapacks and Powerwalls.
FinDreams will be providing approximately 20% of the cells needed on a month-to-month basis at Megafactory Shanghai. This is a move away from CATL – who was previously Tesla’s sole supplier of battery cells, after a transition away from LG Chem and towards LFP (Lithium Iron-Phosphate) batteries.
Mega Shanghai is expected to produce 10,000 Megapack units a year – an annual production capacity of 40 GWh. While it just broke ground recently, it’s expected to be up and running by late 2025.
