In Q2 2020, Tesla has shown strong resilience in these unprecedented times. Despite closing their main plant in Fremont for 6 weeks, the company posted their fourth consecutive quarterly GAAP earnings, generating a positive free cash flow of $418 million. In Q2 of this year, Tesla increased its revenues in the Chinese market by 102.9% to $1.4 billion.
Glad to learn that @Tesla doubled its Q2 revenues in China to $1.4 billion(y-on-y). Foreign investment is welcomed to prosper in #China. China is further opening its economy and improving its business environment. China-US relations also need new and clean energy, NOT pollution. pic.twitter.com/GrdmgEBqE1
— Cui Tiankai (@AmbCuiTiankai) July 28, 2020
China became the 2nd largest market after the United States, earning 23.19% of the company’s total revenues for the quarter, according to a filing the company sent to the US Securities and Exchange Commission on Tuesday. Tesla stated when filing that its Model 3 was the best-selling EV for the quarter in China. Giga Shanghai is offering the domestically produced Model 3 at a lower price point than competing premium midsize sedans, even before receiving government tax breaks.
"Local manufacturing is critical to our expansion and sales in China, which is the largest market for EVs in the world," the filing says.
Data from the China Passenger Car Association (CPCA) show that Tesla sold 14,954 Chinese 3 models in June, up 35% from the previous month, accounting for 23% of total electric vehicle sales in China. In addition, in June monthly sales of the Chinese Model 3 surpassed the Audi A4, Mercedes C-Class and E-Class for the first time.
The list includes all plug-in vehicles.
Source: Choose Auto via u/Imakeshittycardesign / Reddit
Tesla is currently building a production line for Model Y in Giga Shanghai. The construction of the building has already been completed and equipment is being installed there. China-made Model Y shipments are due to begin in early 2021, but Tesla has been showing a trend to be ahead of its own schedules lately.
The company said that by the end of this year, localization of auto parts will reach 80%, compared with the current localization rate of around 40%. This will certainly have a positive impact on the speed of production, the cost of cars, and ultimately will attract more buyers.
Article edited by @SmokeyShorts, you can follow him on Twitter
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
