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May 19, 2017
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Sales of Tesla vehicles in China plunged 69 percent in July, according to the China Passenger Car Association (CPCA).



According to the report Tesla sold 32,968 vehicles in China last month, compared to 28,138 in June. Tesla currently builds its Model 3 sedan and Model Y SUV at its factory in Shanghai.



Overall, retail sales of passenger vehicles, including sedans, sport-utility vehicles, and multipurpose vehicles, dropped 6.2 percent year on year to 1.5 million units in July, the Association said.



Tesla has stumbled a bit in China. The company has had to recall nearly all of the cars built in Shanghai. The company also experienced some bad PR with protestors claiming that Tesla was producing vehicles with quality and safety issues.



The struggles are concerning, given that China is a major market for electric vehicles. Tesla faces much more competition in China, where there are a number of electric carmakers with products marketed at a much cheaper price.  

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markwj

Moderator, Asia Pacific
Apr 10, 2011
4,630
1,288
Hong Kong
The snippet posted here is not helpful in understanding the issue. This Reuters report fleshes out the details:


Production was up, but local sales were 8,621 cars (compared to 28,138 in June). There could be many reasons for this; including production allocation at the beginning of the quarter (due to long shipping times) as the most likely, and demand being just one alternative.
 
Yeah... "Tesla currently builds its Model 3 sedan and Model Y SUV at its factory in Shanghai."... also not accurate (by omission).

Shouldn't this state "Tesla currently builds its Model 3 sedan and Model Y SUV sold in China and European markets at its factory in Shanghai."?

Aha, that explains it! I clicked the "contributor" link and lo and behold, it's Bob Lutz.

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This is from an article on the home page of Tesla Motors Club.

"Sales of Tesla vehicles in China plunged 69 percent in July, according to the China Passenger Car Association (CPCA).

According to the report Tesla sold 32,968 vehicles in China last month, compared to 28,138 in June. Tesla currently builds its Model 3 sedan and Model Y SUV at its factory in Shanghai."

Unless I'm reading this wrong...

June sales - 28,138
July sales - 32,968.

(32,968-28,138)/28,138 = 17% increase in sales from June to July. Where is the 69% plunge remark coming from?

What am I missing? If the article is not incorrect, it is VERY poorly written.
 

markwj

Moderator, Asia Pacific
Apr 10, 2011
4,630
1,288
Hong Kong
What am I missing? If the article is not incorrect, it is VERY poorly written.

The article is talking about *local* sales. In July they made sold 32,968 China-made vehicles, but 24,347 of those were for export, leaving 8,621 sold in China. The June number was 28,138. Hence the 69% plunge in local sales.

Elon's explanation is that Tesla makes cars for export in the first half of the quarter (which is what they have been doing for years already, and is well known both to the industry and to those waiting for their cars).
 

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