According to preliminary estimates released on Wednesday by the China Passenger Car Association (CPCA), Tesla Inc sold roughly 78,000 China-made vehicles in June.

This was a 142 per cent increase from May, when Tesla sold 32,165 China-made automobiles, and a 135 per cent increase from the previous year. Tesla’s factory in Shanghai, China’s economic centre, suffered significantly in the second quarter due to a lockdown that forced the site to suspend operations for 22 days beginning in late March.

The Model 3 and Model Y assembly facilities reopened on April 19 and resumed exports on May 11, but output had yet to return to pre-lockdown levels.

The issues in China were considered as a major factor in Tesla reporting an 18% reduction in second-quarter deliveries from the previous quarter, halting a nearly two-year streak of record quarterly deliveries.

According to an internal production memo seen by Reuters last month, Tesla intends to produce more than 71,000 vehicles at its Shanghai plant in June. 

According to a separate internal letter obtained by Reuters, the factory is undergoing an upgrade to increase output, which requires it to cease most operations in the first two weeks of July. According to the memo, the factory’s goal is to eventually produce 22,000 cars every week.

Aside from Tesla, the CPCA projected that 1.926 million passenger cars were sold in China in June, a 22 percent increase year on year, aided by recent initiatives by local governments to stimulate the market.

Electric vehicles, in particular, were selling well, and the CPCA anticipated that overall June sales may reach 546,000, up 130 per cent year on year, headed by BYD Co, which sold 134,000 vehicles during the month.

(Adapted from EconomicTimes.com)