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Tesla (TSLA) made an impressive and somewhat surprising production surge at Gigafactory Shanghai in China.
This could explain the sudden change in strategy and the start of exports.
The China Passenger Car Association (CPCA) and the China Association of Automobile Manufacturers (CAAM) released their data for October 2020.
It shows that the Chinese auto market grew 12% – continuing to recover quickly after the auto sales crash caused by the pandemic.
Sales of energy vehicles, which include BEVs, PHEVs and fuel cell cars, increased 105% to 160,000 units.
As for Tesla, the automaker maintained roughly the same month-to-month sales level, but it impressed with its vehicle production.
ACIPR reports that Tesla has produced nearly 23,000 cars from Gigafactory Shanghai in China.
This represents an increase of about 10,000 cars month over month, which is an unusual production ramp.
The sudden surge in production comes as we learned that Tesla has changed its strategy and decided to start exporting cars out of China to other markets, including Europe.
It started with its first delivery in October, during the production surge, with 7,000 cars.
Taking Electrek
This kind of month-to-month increase is a bit crazy and it explains why Tesla quickly changed strategy.
We were concerned that the demand in China was not high enough and we were half right.
It’s not high enough right now for that type of production capacity, but that production capacity is just plain insane.
I think it looks very good for Tesla in China right now amid a rapid market recovery.
The United States could be tougher in the coming months until the pandemic is under control and we are clear on who is in charge of government.
If Tesla could reclaim access to the federal tax credit, that would be huge for them, but the lack of clarity will negatively affect their performance in the market in the meantime.
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