Tesla pins hope on refreshed Model Y to regain share after sales dive in China

The company’s Gigafactory in Shanghai, its largest in the world, is ramping up production of its bestselling model to ensure early deliveries to customers, according to two sales managers in the city.

Tesla’s sales on the mainland in February fell to 30,688, the lowest since July 2022. Deliveries slumped 51.5 per cent month on month and 49.2 per cent year on year.

Tesla began delivering the upgraded version of the Model Y on the mainland in late February, but buyers in Shanghai are still waiting for deliveries due to a production shortage.

Customers ordering the entry-level Model Y have to wait for two to four weeks for deliveries, according to Tesla China’s website. The wait for the long-range version is six to 10 weeks.

“Tesla is playing catch-up with its Chinese rivals after losing market share to companies like BYD and Xiaomi,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “The new version of the Model Y is certain to buoy sales in the near term, but the US carmaker will still face pressure to retain its share in this cutthroat market.”