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Tesla China Shipments Rose in August on Trade-In Subsidy Boost

(Bloomberg)

(Bloomberg) -- Tesla Inc. increased vehicle shipments from its Shanghai factory for a second consecutive month after China’s government doubled a subsidy encouraging drivers to trade in older cars for electric models.

The automaker shipped around 86,697 Model 3 sedans and Model Y sport utility vehicles in August, according to preliminary data released Monday by China’s Passenger Car Association. That’s up roughly 3% from a year ago and points to some momentum for the plant following a first-half slowdown.

China’s plug-in vehicle market received a boost when the government doubled a rebate for qualifying models at the end of July to 20,000 yuan ($2,800), with entry-level battery EVs and plug-in hybrid cars benefiting the most, the PCA wrote in a WeChat post.

Automakers wholesaled around 1.05 million electric and hybrid vehicles last month, a roughly 32% increase from a year ago, according to the association. Battery-powered vehicles likely outnumbered conventional gasoline cars again after doing so for the first time in July.

--With assistance from Danny Lee.

©2024 Bloomberg L.P.