Tesla Giga Shanghai Upgrade Leads to Low EV Sales in China? Negative Effects Expected to Continue Throughout August

Tesla's Giga Shanghai upgrade is now being blamed for the latest EV sales drop in China.

Unlike the previous production halts, the most recent shutdown was conducted by the automaker for its capacity enhancement in the massive electric car factory.

The latest Tesla Giga Shanghai shutdown was conducted on the last week of July.

Ever since the massive EV facility was completed in Shanghai, China, it became the export hub of the EV maker.

Its main goal is to ship Tesla Model Y and Model 3 units to Asia-Pacific and European markets.

Now, it is expected to have better production activities. But, there are certainly some consequences.

Tesla Giga Shanghai Upgrade Leads to Low EV Sales in China?

According to Electrek's latest report, Tesla's monthly-to-month EV sales in July drastically decreased. During this period, the automaker could only sell more than 28,000 Chinese-made EVs.

On the other hand, it was able to export over 19,000 electric car units. This locale sales are around 60% less compared to the EV sales record in June; more than 78,000 China-made EVs.

But, the exported vehicles in July are quite higher compared to June, which only saw less than 1,000 exported Tesla units.

Now, many critics claim that the negative effects of the ongoing Tesla Giga Shanghai shutdown will last throughout August.

However, once the capacity enhancement is completed, the electric carmaker is expected to bounce back from its shortcomings.

The Tesla Giga Shanghai upgrade will likely increase the weekly EV production of the automaker by around 21,000 units.

If this is true, then Tesla Giga Shanghai will be able to manufacture around one million electric cars every year.

Tesla Overtaken by BYD

While the July EV sales of Tesla in China experienced a massive drop, its Chinese competitor, BYD, was able to overtake it.

CNN Business reported that the local EV manufacturer sold more than 80,000 electric cars, a 16% increase from its June EV sales.

This just shows that China is further embracing the rising EV market.

CPCA (China Passenger Car Association) even claimed that the Asian country's zero-emission car sales could reach six million units before 2022 ends.

Meanwhile, Tesla's stocks are experiencing gradual gains after the recent Tesla Cyber Roundup event.

On the other hand, Tesla Europe started selling Model S and Model X units after the 2021 shutdown.

For more news updates about Tesla and other automakers, always keep your tabs open here at TechTimes.

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Written by: Griffin Davis