Tesla just announced that in China sold 11,800 made-in-China Model 3 sedans in August, Reuters reports, while also noting that GM’s micro EV sold 15,000 cars in China. So, in total from these two American automakers alone, we have almost 27,000 EVs sold in one month in China. That’s a huge number !
If we add up the total number of deliveries that Tesla made in China alone, we get 69,178 vehicles that were made in the Shanghai factory
so far this year and delivered. Tesla noted that the numbers for August are lower than expected, but that September’s should be higher.
If you look at the trend, you can clearly see the impact that Covid-19 had on Tesla’s deliveries in China. The factory was shut down for a few weeks in China, yet when it reopened, it didn’t take long for vehicles to start pouring out again.
Tesla has been one of the few non-software/virtual companies to thrive despite the pandemic. Many oil and gas companies have struggled. Many have even gone bankrupt. In the face of declining auto sales, however, Tesla surprised those who didn’t believe in it. I think Walt Disney says it best:
“The flower that blooms in adversity is the rarest and most beautiful of all.”
In defiance of the odds and the critics, Tesla’s profit of $105 million and 80,227 in deliveries for the second quarter just proves that Tesla is thriving in the face of global challenges. However it’s not all sunshine and rainbows — without the storms, we don’t get rainbows. Tesla actually noted that flooding and extreme weather in China had some type of impact on Tesla’s August delivery numbers.
The Japan Times called this the “Big China disaster that you’re missing,” and pointed out that this massive flooding has wiped away billions of dollars of value in China. The hundreds of thousands of levees, dikes, reservoirs, and dams along its major river systems are struggling to cope with the rain-fed flooding that has inundated most of its industrial and agricultural lands. The deluge has also engulfed millions of homes. NPR reported that nearly 4 million people were evacuated or displaced from the flooding. So, it makes sense that, in these cases, many wouldn’t be thinking about purchasing any type of new vehicle, whether it’s a Tesla or something else.
On a more positive note, shared that Q3 is on track for 36,000 made-in-China Model 3 deliveries. My prediction is that for the third quarter of 2020, Tesla China will produce 42,000 Model 3s and deliver 36,000.
This year has been a pretty challenging one for many people around the world. Tesla’s success is one of the brighter points of this year.