Tesla China Q2 Sales Hit New High As Giga Shanghai-Made Cars Account For 53% Of Global Deliveries

Tesla, Inc. TSLA’s China sales rose sharply in June, explaining the strength seen in the global deliveries the company reported Sunday.

What Happened: Tesla China delivered 93,680 units of Giga Shanghai-made cars in June, according to data from the China Passenger Car Association, Reuters reported.

This marks a 18.72% increase from a year-ago and 20.57% upside from April’s sales. The June number marks a second-best total for Tesla in China after November 2022’s record performance of 100,291 units.

Tesla’s second-quarter sales tally in China was 247,217 units, a record. Data released by the Elon Musk-led company showed that it delivered 466,140 units globally in the quarter, which suggests a little over 53% of the cars delivered were made in China.

See Also: Everything You Need To Know About Tesla Stock

Why It’s Important: Tesla’s Giga Shanghai manufactures both Model 3 and Model Y cars, and the vehicles rolling out of the factory boast better margins given the production efficiency at the factory and the relatively cheap labor force. This should bode well for Tesla’s automotive margins.

The strong China sales figure was achieved on the back of promotional schemes such as a discount on new inventory vehicles. The number is all the more important given the intensifying competition in the Chinese market, where domestic startups have models catering to different price points. Tesla is constrained by the limited product offering it has for users in China.

Tesla closed Monday’s truncated session at $279.82, up 6.9%, according to Benzinga Pro data.

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Photo courtesy of Tesla.