Tesla (TSLA) achieved impressive and surprising production growth at its super factory in Shanghai, China.
It can explain the sudden change in strategy and the beginning of export.
China Passenger Car Association (CPCA) and China Automobile Manufacturers Association (CAAM) released data for October 2020.
It shows that the Chinese auto market has grown by 12% and continues to recover rapidly after the crash of auto sales caused by the pandemic.
Sales of energy vehicles including BEV, PHEV and fuel cell vehicles increased by 105% to 160,000.
As for Tesla, the automaker’s monthly sales levels remain roughly unchanged, but its vehicle output has left a deep impression.
CPCA reports that Tesla has produced nearly 23,000 cars at its super factory in Shanghai, China.
It represents an increase of approximately 1
When we learned that Tesla had changed its strategy and decided to start exporting cars from China to other markets including Europe, production suddenly surged.
It started with the first shipment in October, and during the production surge, there were 7,000 cars.
This month-to-month trend is a bit crazy, which explains why Tesla quickly changed its strategy.
We worry that China’s demand is not high enough, and we are half right.
At present, it is not high enough for this kind of production capacity, but that kind of production capacity is simply crazy.
At this moment of rapid market recovery, I think this is very good for Tesla in China.
Before the pandemic is brought under control, the United States may become tougher in the coming months, and we know who is in charge of the government.
If Tesla can regain federal tax credits, it will be huge for them, but the lack of clarity will also have a negative impact on its market performance.
FTC: We use profitable car affiliate links. More.
Subscribe to Electrek on YouTube to get exclusive videos and subscribe to podcasts.