Tesla has been among the best-selling EV companies in China. Tesla sold more than 500,000 cars in China in 2023 and made up almost a fifth of the company's worldwide sales. The brand-new Tesla Model 3 and the equally fresh-from-the-oven Model Y have been especially popular, with the latter being deservingly dubbed China's best-selling new energy vehicle.
The Shanghai Gigafactory, Tesla's very first manufacturing center in another country has been instrumental for it. By early 2024, the factory's production capacity had risen to 750,000 vehicles a year. The factory caters to the Indian market and exports vehicles abroad as well. That helped the Gigafactory cut its cost of vehicle production per unit by some 20%, translating directly to a far more competitive Tesla price in China.
The market performance of Tesla is also reflected in its stock price and profitability. Overall, revenue from China for Tesla reached $8 billion in 2023, up by 15% year-over-year. Tesla Inc reported a surge in second-quarter revenue on Monday that saw it trounce analysts' expectations as deliveries of its high-end electric cars hit a record speed. According to industry experts, Tesla's presence in the Chinese market also reflects China's ambition of becoming carbon neutral by 2060.
Being strategic on the pricing and local manufacture has enabled this company to improve its positioning in market. This makes Model 3 in China one of the most budget-friendly luxury EVs pending at around $30,000 to start. The strategy has helped Tesla gain a large market share, with the brand now having ~30% of China's premium EV segment.
Tesla is highly noticed as well for its innovative approach to the autonomous driving technology. Its development in China means that the Full Self-Driving (FSD) system of the company which is under improvement has undergone long testing. The technology's more advanced abilities, like full auto lane change and park assist are frequently addressed in industry reviews as well consumer feedback.
More than just a vehicle sales boon, Tesla's impact is far-reaching. The firm has been involved heavily in the growth of this charging infrastructure, especially within its native China. Tesla had built more than 2,000 Supercharger stations around the nation by mid-2024. The expansion facilitated long-distance driving while enhancing EV ownership convenience. The new outlet is in line with the country's growing interest towards sustainable transportation.
Other than the product, Tesla has also got good words for its customer service and support. Company has also introduced a wide network of service points, which includes Mobile Service Units and Customer First Care Helpline for an enriched customer ownership experience.
Visit Tesla China for more on how the brand did in the country and what that means to EV sales there.