Affected by the low base effect, Tesla (TSLA.US )'s Chinese electric vehicle sales in December soared by 91%

Tesla (TSLA.US) produced electric vehicles in China, achieving its fourth consecutive month of sales growth in February, exceeding market expectations. The low sales base from the same period last year effectively offset the adverse effects brought by seasonal factors. Data shows that the delivery volume of Model 3 and Model Y produced at Tesla’s Shanghai Gigafactory reached a total of 58,600 units in February, a significant increase of 91% compared to the same period last year, while the growth in January was 9.3%. However, February sales declined by 15.2% compared to January this year.

Additionally, according to data released by the China Association of Automobile Manufacturers, Tesla’s electric vehicle export volume from the Shanghai factory last month was about 20,000 units, a staggering increase of approximately 4.2 times compared to the same period last year.

Due to the suspension of some production lines for the new Model Y during the Spring Festival, the number of China-made electric vehicles that the American automaker originally planned to deliver in February 2025 was affected. Furthermore, due to the fluctuations in the dates of the Lunar New Year, car sales in the first two months of each year often experience significant volatility.

To solidify its competitive position in a fiercely contested market, Tesla has launched a low-interest financing plan for seven years. This move acts like a “bomb,” forcing competitors like BYD (002594) to follow suit in China, the world’s largest automotive market. Currently, government subsidies are gradually declining, and the intensity of market competition is becoming increasingly pronounced, with the situation becoming more tense.

Meanwhile, its competitor Geely Auto grew by 1% to 206,160 units. During the same period, NIO (NIO.US) delivered 20,797 units in February, an increase of 57.6% year-on-year.