According to early estimates released on Wednesday by the China Passenger Car Association (CPCA), Tesla Inc (TSLA.O) sold roughly 78,000 China-made cars in June.

This was a 142 percent increase from May, when Tesla sold 32,165 China-made automobiles, and a 135 percent increase from the previous year.

Tesla’s plant in Shanghai, China’s economic center, suffered significantly in the second quarter due to a lockdown that caused the facility to suspend operations for 22 days beginning in late March.

The Model 3 and Model Y assembly facilities reopened on April 19 and started exports on May 11, although output has yet to return to pre-lockdown levels.

The issues in China were considered as a major reason in Tesla reporting an 18% reduction in second-quarter deliveries from the previous quarter, halting a nearly two-year streak of record quarterly deliveries. 

According to an internal production document seen by Reuters last month, Tesla intends to produce more than 71,000 cars at its Shanghai facility in June. 

According to a second internal letter seen by Reuters, the factory is undergoing an upgrade to increase productivity, which requires it to cease most operations in the first two weeks of July. According to the document, the factory’s objective is to ultimately manufacture 22,000 automobiles every week. 

Aside from Tesla, the CPCA projected that 1.926 million passenger vehicles were sold in China in June, a 22 percent increase year on year, aided by recent initiatives by local governments to boost the market.

Electric cars, in particular, were selling well, with the CPCA estimating that total June sales might reach 546,000, up 130 percent year on year, headed by BYD Co (002594.SZ), which sold 134,000 vehicles during the month.

Source: Reuters


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