Tesla China-Made Model Y Sales Jump as Bigger Cars Gain Traction

Tesla Inc. sales of China-made Model Y cars more than doubled last month, allaying for now concern that a high-profile protest and a ban on some of the automaker’s vehicles from government buildings due to security concerns may have hurt demand.

Registrations of the sporty SUV, which in China starts from around $53,000, rose to 12,785 in May from 5,520 in April, data from China Automotive Information Net show. Registrations of the cheaper Model 3 sedan were 9,324, up from 6,429.

April’s figures were well down on March because some production lines at the Shanghai factory were suspended for two weeks for maintenance and adjustment. Tesla only starting making deliveries of the Model Y in China in January.

Back on Track

Tesla’s China sales rebounded in May on demand for the Model Y SUV

Source: China Automotive Information Net; Bloomberg Intelligence

“Once the Model Y gets to full production, we’ll probably see a ratio of almost a 2-to-1” versus Model 3s, said Tu Le, the managing director of Beijing-based consultancy Sino Auto Insights. “Chinese consumers love SUVs and crossovers. I think the Model Y is going to do really well toward the end of this year.”

Data from China’s Passenger Car Association released earlier this month also showed Tesla’s China shipments rebounded in May, with the electric-car pioneer reporting wholesales of 33,463 locally made vehicles last month, compared with 25,845 in April.

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