Tesla China Denies Report that Domestic Demand is Low Despite Price Cuts

von Eva Fox November 22, 2022

Tesla China Denies Report that Domestic Demand is Low Despite Price Cuts

Image: @JayinShanghai/Twitter

Tesla denied a report that demand for its cars in China is low despite recent price cuts offered to consumers.

Gigafactory Shanghai's capacity continues to grow, allowing the company to build up stock, which is unusual for the Texas manufacturer but commonplace in the auto industry. While there is speculation that this is how Tesla is trying to change its business model to distribute car deliveries evenly throughout the quarter, it still raises a lot of rumors and fears.

Recently, delivery times for Tesla vehicles in China have been shortened and prices have been reduced. In addition, the company offered a reduction in the purchase price if the customer opted for insurance from Tesla's partner company. All this was supposed to stimulate demand specifically in China, in a market that is still recovering from the COVID-19 lockdown in the spring. According to local news agency Huxiu, despite the package of measures, Tesla has not received the expected increase in orders in China. This conclusion was picked up by mainstream media around the world.

However, Tesla denied the report, responding to Sina Finance that the claim in the Huxiu article is false. Although the answer was brief, it should be kept in mind that this should be enough to understand that Huxiu's conclusion about the low number of orders received in China is not true. In early December, we will receive accurate data for November, and then the situation will become extremely clear.

At the moment, due to the significantly increased number of cars produced at Gigafactory Shanghai, the load on Tesla's logistics is enormous. In Q3 2022, the company did not manage to deliver about 20,000 vehicles on time, because it did not have enough ships, trains, and trucks for this. This problem remains relevant, since in 2022, there is a shortage of ships in the world to transport cars, so Tesla's focus on the domestic markets of countries where there are factories is a reasonable move.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts; follow him on Twitter

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