On May 6th, it was reported that according to data released by China Passenger Car Association, Tesla sold 75,842 Shanghai-produced vehicles in China in April this year, an increase of 4,916.01% compared with 1,512 in the same period last year, but a decrease of 14.66% compared with 88,869 in March this year.
Currently, Tesla produces domestic vehicles in its Shanghai Gigafactory. Last April, due to the impact of the pandemic, production at the Shanghai Gigafactory was interrupted, which led to a significant decline in Tesla China’s sales in April last year.
The cars produced by Tesla’s Shanghai Gigafactory are not only supplied to the domestic market but also to overseas markets. Now, the company has completed the transformation of the Shanghai Gigafactory into a major automotive export center.
Since the beginning of this year, Tesla has lowered prices in multiple global markets and sparked a “price war” in China. Since then, more than 40 local and international car brands have joined the “price war”.
Although the price reduction strategy has helped Tesla boost its sales, it has also squeezed its automotive gross margin. The company’s first-quarter 2023 financial report showed a total revenue of $23.329 billion, a year-on-year increase of 24%. Among them, the total revenue from automotive-related businesses was $19.963 billion, a year-on-year increase of 18%.
However, the company’s net profit for the first quarter fell by 24%, due to its profit being cut from the electric vehicle price reduction strategy that began in early January.
After multiple price reductions, Tesla raised car prices in some markets this week. According to reports, the company raised the prices of Model Y and Model 3 in Canada, China, Japan, and the United States.
In China, the company raised the Chinese market prices of Model 3 and Model Y on May 2nd, with all models rising by 2,000 yuan. On May 5th, the company raised the prices of all new Model S and Model X models in China by 19,000 yuan. After the adjustment, the starting price of Model S is 808,900 yuan, and the starting price of Model X is 898,900 yuan.
