U.S. automaker Tesla Inc (TSLA.O) has reported a 2.4% increase in deliveries of China-made electric vehicles (EVs) in May, totaling 77,695 units. This marks a 142% year-on-year surge from the 32,165 vehicles delivered in May 2022, when production was affected by COVID-19 containment measures in Shanghai, where Tesla’s factory is located, according to data from the China Passenger Car Association (CPCA).
Tesla’s Chinese competitor, BYD Co Ltd (002594.SZ), recorded 239,092 vehicle sales in May, a 14% growth compared to the previous year. The company’s lineup includes both EVs, with its Dynasty and Ocean series, and petrol-electric hybrid vehicles. The CPCA is set to release more detailed car sales figures for May later this month.
Tesla CEO Elon Musk recently met with Chinese Vice Premier Ding Xuexiang in Beijing during an unannounced two-day visit. He also met with other government officials, including foreign, commerce, and industry ministers, and dined with Zeng Yuqun, chairman of battery supplier Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ).
The high-stakes visit, Musk’s first in three years following Beijing’s reopening of its borders, comes as Tesla faces increasing competition from Chinese EV makers and uncertainty surrounding the expansion of its Shanghai plant, the company’s largest production hub. Musk visited the facility on Wednesday and met with Chen Jining, the Shanghai secretary of the ruling party, who encouraged Tesla to enhance investment and business growth in the city, according to a statement from the municipal government.
In mid-May, China’s market regulator disclosed that Tesla is distributing over-the-air software updates for more than 1.1 million vehicles to address a braking issue, in an action described as a product recall. Since May, Tesla has also raised prices in several countries, including China, after earlier price cuts ignited a price war, prompting numerous international and local brands to follow suit.
