Key Points
- Tesla’s sales from its China factory grew 9.9% year over year in November.
- The sales jump was driven by the recent launch of new, longer-range versions of the Model 3 and Model Y.
- Tesla faces intense competition from Chinese rivals, including newcomer Xiaomi and industry giant BYD. BYD is setting export records and outselling Tesla in Europe.
- The Chinese EV market is so competitive that even BYD’s global sales have recently declined.
Tesla saw a significant sales boost from its China factory in November, with sales of its locally made electric vehicles jumping 9.9% year over year. The U.S. automaker is navigating an incredibly competitive market in both China and Europe, and this latest surge provides a welcome lift.
According to data released Tuesday, sales of the Model 3 and Model Y vehicles built at Tesla’s Shanghai plant were also up a massive 41.0% from the previous month. This impressive growth follows the company’s recent strategic moves to refresh its lineup.
Last month, Tesla introduced a longer-range version of its bestselling Model Y in China, following the launch of an updated Model 3 and a six-seat Model Y. The annual sales increase was the steepest the company has seen in 14 months.
However, the good news comes amid intensifying pressure from rivals. While CEO Elon Musk turns some of his focus toward futuristic projects like robotaxis, Chinese competitors are rapidly gaining ground in the EV space. Newcomer Xiaomi has already become a formidable challenger with its SU7 sedan and YU7 SUV, blowing past its yearly sales target.
Meanwhile, Tesla’s biggest Chinese rival, BYD, continues its global expansion, with overseas shipments hitting a record high of over 130,000 vehicles last month. BYD has also consistently outsold Tesla in the European market. But the fight is tough for everyone; even BYD saw its global sales drop for the third straight month as it battles other local brands like Geely and Leapmotor in a fierce price war at home.
