How Tesla Overcame Negative Press In China To Post Strong June Sales

New data out of China shows Tesla, Inc. TSLA had a strong month in June for its Shanghai Giga-made Model 3 and Model Y vehicles.

What Happened: New care registrations for Tesla's made-in-China Model 3 sedan and Model Y crossover vehicle climbed 29% month-over-month in June, Bloomberg reported, citing data released by the China Automotive Information Net.

Registrations for Model 3 sedans jumped 80% month-over-month to 16,995 units, while registrations for Model Y vehicles fell 10% to 11,513, the report said.

Tesla began selling China-made Model 3 sedans in January 2020. A year later, the Model Y vehicle became available to Chinese customers.

Earlier this month, the company unveiled a lower-priced Model Y standard range edition. This model is priced roughly 20% lower than the original long-range Model Y vehicle. Deliveries of the cheaper version of the Model Y vehicle are expected to begin in August.

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Why It's Important: Tesla faced several setbacks in China this year. The EV maker had to face protests by users over quality issues with its vehicles.

The company's vehicles were also barred from sensitive locations by the Chinese government for fear of the camera installed in the vehicles used for spying.

To add to its woes, the company was forced to recall almost all of its domestically sold vehicles in China for a software fix.

Tesla's Chinese sales plummeted in April before recovering in May. The June number vouches for the company's stronghold on the market.

TSLA Price Action: At last check, Tesla shares were up 0.18% at $647.40.

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Photo: Tesla CEO Elon Musk at the Shanghai Gigafactory. Courtesy photo.