Tesla (TSLA) delivered a record number of vehicles in September from its Shanghai plant, according to wholesale numbers released Tuesday from the China Passenger Car Association released. However, Tesla deliveries did not meet views.
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Tesla China sales estimates for September totaled 83,135 vehicles, an increase of 8% compared to the prior month and a record. However, this is well below the 100,000 vehicle deliveries analysts had projected Tesla would deliver in China during September.
Tesla delivered 51,802 Model Y crossovers and 31,333 Model 3 sedans from its Shanghai plant. In total, 5,522 vehicles were exported while 77,613 were local retail sales in China.
Tesla weekly vehicle sales in China fell off at the end of September, dropping 54% in the last week of the month compared to the prior numbers. The global EV giant sold 10,651 vehicles between Sept. 26-Oct. 2 vs. 23,109 vehicles from Sept. 19-Sept. 25.
Tesla set a record in June of 78,906 vehicles delivered in China. It came close to matching that high in August, but fell short. In June, Tesla exported 968 vehicles from its Shanghai facility with domestic China sales of 77,938.
Last week, Tesla reported third-quarter global vehicle deliveries that also set a record, while coming in well below views.
Tesla deliveries totaled 343,830 EVs in the third quarter, up 42% vs. a year earlier and topping Q1’s record 310,048. It was also 35% higher than Q2’s 254,695. Analysts had expected Tesla deliveries of 350,000-370,000 on Q3, with the consensus slightly above 360,000.
Tesla stock edged down more than 1% ahead of Tuesday’s market trading. Shares had closed down 0.05% to 222.96 on Monday. Fellow auto giants Ford (F) and General Motors (GM) also fell hard Monday morning after UBS (UBS) downgraded both. Ford dropped 6.8% while GM edged down around 4%.
Tesla Deliveries: Demand Concerns
With Tesla’s Shanghai plant recently receiving a capacity upgrade, there have been indications that Tesla demand may not be not strong enough to support the increased production capability, especially in China.
Reuters has reported that Tesla plans to keep production at the upgraded Shanghai plant at around 93% of capacity through the end of year. The recent improvements to the plant increased production capacity by almost a third.
The Shanghai plant was interrupted this summer for its upgrades, affecting output in July and early August. However, even if the plant is operating at 93% capacity, it should produce significantly more vehicles in Q4 than it did in Q3.
Tesla China wait times for new vehicles came down sharply in September, signaling little or no backlog. Wait times have increased modestly again, as Tesla shifts back to exporting Shanghai vehicles at the start of the quarter.
Tesla also began offering a new insurance subsidy in China during September, serving as a de facto price cut. That insurance subsidy will now run through year-end.
There is speculation that Tesla will announce an outright…
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