BEIJING, Oct 3 – China is becoming a crucial market for Tesla, with the electric-vehicle maker offering incentives to boost sales in the country and its Shanghai factory recently exporting its 1 millionth vehicle.
According to Wall Street estimates, Tesla, based in Austin, Texas, is expected to report an 8 percent increase in third-quarter deliveries of its electric vehicles in China on Wednesday powered by extended incentives and financing plans.
“China, which accounts for one-third of Tesla’s sales, is a major growth driver,” said Scott Acheychek, chief operating officer of REX Financial, which offers exchange-traded funds that track Tesla’s stock performance.
Deutsche Bank analysts estimated that in the third quarter, Tesla would deliver about 139,000 Model 3 sedans, 296,400 Model Y SUVs, a combined 13,350 of its larger Model S sedans and Model X SUVs and about 13,500 Cybertruck pickups in China.
The Model 3 and Model Y are manufactured at Tesla’s Gigafactory in Shanghai.
With demand for EVs in the United States and Europe dwindling, Tesla delivered about 831,000 vehicles in the first half of this year. To prevent a decline in deliveries, it needs to hit about 979,000 vehicles in the second half.
Shares of Tesla closed at $261.63, up $1.17, in Nasdaq Stock Market trading on Monday.
Sales in China were also fueled by government policies to encourage consumers to switch their gas-powered vehicles to battery-powered ones.
Responding to rising competition from domestic Chinese automakers such as BYD, Tesla introduced a range of offers in the spring, including insurance deals, discounts on certain paint choices and zero-interest loans of up to five years.
