Sales of Tesla cars in China fell after the suspension of production to upgrade the factory

According to the China Passenger Car Association (CPCA), 28,217 Tesla vehicles were sold in China in July. That’s nearly two-thirds of last month’s sales. Due to the modernization of the production line at the Shanghai plant, production stalled.

Tesla reportedly delivered a total of 19,756 Model 3 and Model Y vehicles in July.

While Tesla sold a total of 78,906 vehicles of both models in June and exported 968 units, passenger car sales in China rose 20.1% year-on-year to 1.84 million vehicles in July.

According to CPCA, electric vehicle sales accounted for 26.4% of all passenger vehicle sales in July, up 117.3%, with hybrid electric vehicle sales outpacing electric vehicle sales alone.

Tesla focuses on exporting vehicles in China at the beginning of the quarter, while focusing on domestic sales at the end of the quarter.

Tesla had already halted almost all production at its Shanghai plant in July due to the need to upgrade the production line to produce about 22,000 cars per week. In June, 17,000 cars per week were produced.

The increase in production capacity for Tesla’s large manufacturing center came this time after Tesla had to halt production for two months in a row. Lockdown measures to contain the spread of COVID-19 in Shanghai had a major impact on profits in the second quarter.

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