Tesla, Inc.'s TSLA China sales momentum remained intact in February, as the electric vehicle manufacturer weathered the industrywide softness fairly well.
What Happened: Tesla reported wholesale sales of 56,515 units in China, Reuters reported, citing data from the China Passenger Car Association.
This represented a slip back from the 59,845 vehicles the EV maker sold in January, but was much higher than the 18,318 units it sold in the year-ago period.
Out of the total, Tesla sold 23,200 vehicles in China and exported the remaining 33,315 units. A month ago, the company's domestic sales and exports stood at 21,127 units and 40,499 units, respectively.
In comparison, Warren Buffett-backed BYD Company Limited BYDDF had a sales tally of 43,173 units for February.
The U.S.-listed Chinese trio — Nio, Inc. NIO, XPeng, Inc. XPEV and Li Auto LI — also struggled in the month.
Related Link: Tesla Plans For A Second Plant In Shanghai To Increase China Production Capacity to 2M Cars: Report
Why It's Important: Tesla's sales performance comes off as fairly robust given the industrywide weakness in China. February is typically a slow month for car sales in China and this year was no exception. The weeklong Chinese New Year was celebrated between Jan. 31 and Feb. 6.
Only five companies had wholesale sales exceeding 10,000 units in China, the CnEVPost reported. Apart from Tesla and BYD, General Motor Corporation GM-partnered SAIC-GM-Wuling, Geely Automobile Holdings Limited GELYF and Chery are the manufacturers that sold over 10,000 units in February, the report said.
Tesla's quarterly sales trajectory follows a pattern of a heavy weighting for exports early in the quarter, with domestic sales picking up only in the final month. The February numbers seem to be adhering to the trend.
China is a vital cog in China's growth story. Last month, reports suggested the company is planning a second plant adjacent to its current Giga Shanghai, aiming to increase annual production capacity in China to 2 million units.
The Giga Shanghai factory manufactures both Model 3 and Model Y vehicles and serves as an export base for the company. Model Y vehicles sold in Europe are being exported from China.
Tesla shares were rising 0.77% to $810.80 Tuesday morning.
Related Link: Elon Musk Takes Chinese Ambassador To US On Drive In Model S Plaid
Photo courtesy of Tesla.
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