Tesla Sets A New Domestic Sales Record In China In Q1 2023 Following Price Cuts

Tesla has been growing vehicle production at an incredible pace. And even more impressively, the EV maker is achieving this growth at the same time, the entire automotive industry has been forced to cut production due to the worldwide supply disruption caused by the COVID-19 pandemic.

And the most significant growth center for the EV maker has been Giga Shanghai. Within three years of the groundbreaking ceremony, Tesla's China factory has already surpassed an annual production run rate of over 1,000,000 vehicles.

This makes Giga Shanghai Tesla’s biggest production hub surpassing the decade-old Fremont California plant. For instance, last November, Tesla hit a new wholesale record out of Giga Shanghai producing 100,291 vehicles in a single month.

November’s number was a 192 percent growth year over year and a 14 percent increase month over month.

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However, when discussing Giga Shanghai’s production there are two things we should keep in mind. The first is that Tesla has designated Giga Shanghai as the EV maker’s dedicated export hub, meaning a significant portion of the vehicles produced at the plant will be exported to numerous countries throughout Asia and Europe.

And second, although Giga Shanghai might be growing production there are reports suggesting demand for Tesla vehicles is softening in the world’s largest automotive market.

Nevertheless, to stock up demand for its vehicles, Tesla at the start of this year implemented a steep price cut across the company’s vehicle lineup and covering all geographical regions. Tesla’s first price cut happened on January 6 in China where the EV maker lowered the price of the Model 3 by 13.5% to $33,500 and the cost of the Model Y by 10% to $38,000.

And on January 12 Tesla followed up by cutting prices worldwide including in North America, Europe, and the rest of Asia. The largest of the price cuts occurred in the US where some variants of Tesla’s vehicles saw price cuts as high as 20%.

The price cuts in the US have currently been successful as it was reported yesterday that this quarter Tesla’s vehicle sales have jumped significantly in the US making it the largest increase amongst all automakers.

And today, we have a report that suggests Tesla’s incredible sales jump in the US which followed the recent price cuts is also being repeated in China.

According to insurance registration data for the Chinese market released today, in the week between March 20 and 26, Tesla insurance registrations totaled 15,886 vehicles. This follows a record 18,712 weekly domestic sales number the EV maker reached in China in the previous week.

Although sales decreased week over week, Tesla’s insured vehicles in Q1 2023 up to March 26 put total sales for the quarter at 126,000 vehicles. This is already higher than the previous quarterly record Tesla set in Q3 2022 delivering over 122,000.

And even more impressively 5 more days of sales data remain to account for the entire quarter, which can add another 10,000 vehicle sales. This can push Tesla’s Q1 2023 China domestic sales to over 135,000 vehicles.

This is certainly impressive and shows that the recent price cuts have enabled Tesla to increase its market share in the shrinking Chinese automotive market. Currently, this is the first quarter of sales data we have since the price cuts, however, we will be sure to keep you posted if Tesla can maintain this momentum.

Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.

Image: Courtesy of Tesla, Inc.

So what do you think? Are you excited to learn that Tesla has set a new sales record in China with 5 days remaining in the quarter? Do you think the EV maker can maintain this performance? Let me know your thoughts in the comments below.

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Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.