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Tesla China on Pace for Record Quarter

Despite difficult economics conditions, Tesla China is on pace for a record quarter.
Tesla China on Pace for Record Quarter

Tesla China Q1, 2023

Tesla is on pace for a record quarter in China, a location that many think is having demand issues. Let's take a look at the data:

Tesla has sold 88,258 vehicles in Q1, 2023 with just 3 weeks left. The estimates for the remaining weeks are:

* Mar. 13-19: 18,500
* Mar. 20-26: 16,000
* Mar. 27-31: 12,000

A total Q1, 2023 China sales number of 134,758. It's even possible there won't be a dip during Mar. 20-26, but this person is forecasting a slight dip.

What's interesting about Q1 of every year is that it is a seasonally weak quarter for auto sales, and that includes EVs. It will be interesting to see if Tesla beats expectations for its numbers.

Still, so far Tesla is doing very well considering the economic and other headwinds that are happening right now in the world. I expect to see an acceleration of production and deliveries in China throughout the year.

Also of note is that the price of Lithium has come down about 50%, and I think that is going to help Tesla and their margins and is a big reason Tesla has been able to lower prices. I think Tesla will still be profitable despite the large price decreases.

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The Remainder of the Year for Tesla China

The drop in Lithium price is significant, and it's most likely below 300,000 per ton now. One could argue that the price is going down due to demand issues as well, we will just have to wait and see how Tesla does for the remainder of the year. Either you believe Tesla has the best EVs and will sell every vehicle it makes for years to come, or you don't. Time will answer this question, but I consider Tesla the leader in EVs.

When you look at insurance data for China, you can see that for the last week, there were 17,032 units insured, which was about 21% above expectations of around 13,000. It's little data points like these that you can use to gauge demand and interest in Tesla vehicles.

Tesla is also transporting cars by rail in China now, and the first train carrying 120 Tesla Model 3 and Model Y vehicles departed Shanghai last week. This will also speed up deliveries and Tesla interest and demand as its reach now extends faster and farther.

Tesla China is experiencing its strongest week since September 2022, and this is during the weakest quarter of the year for auto sales. I expect to see Tesla China increase and have another record year.

How do you feel about Tesla China - is Tesla doing well there?

In Related News: Tesla Model Y is Big Savings For Police Departments

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot

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