China’s EV war: Tesla’s May deliveries of electric cars rise 30 per cent as delivery backlogs shield it from home-grown rivals

Tesla delivered 33,463 vehicles made in Shanghai last month, according to data provided by the China Passenger Car Association

Fans who flocked to Tesla’s showrooms following the surprise launch of its Model Y on January 1 were told to wait until the second quarter for delivery

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A truck transports new Tesla cars at its factory in Shanghai. Photo: Reuters.

Published: 9:30pm, 8 Jun 2021Updated: 11:00pm, 8 Jun 2021

Tesla’s delivery of electric vehicles (EVs) rose by nearly 30 per cent in May, as backlogs due to strong bookings in the first quarter buffered the carmaker’s performance in the world’s largest vehicle market from scores of home-grown competitors snapping at its heels.

The California-based carmaker delivered 33,463 of its Model 3 sedans and Model Y SUVs made in its Shanghai Gigafactory last month, compared with 25,843 units sold in April, according to data provided by the China Passenger Car Association (CPCA), the industry body that compiles monthly sales statistics. The data did not break out Tesla’s sales by models.

The official delivery data stood in stark contrast to the report last week by The Information news website that Tesla’s May deliveries of Shanghai-made models had plummeted to 9,800 units. The bellwether EV maker had suffered negative publicity in China from recalls and a number of missteps over its on-board cameras and data privacy.

“Tesla received a huge number of orders in the first two months of this year, which had yet to be [fully] executed,” said Qian Kang, who owns a car components maker in Zhejiang province near Shanghai. “A smaller volume of orders last month does not necessarily mean that its deliveries would have dropped sharply.”

A Tesla Model 3 electric vehicle, made at the carmaker’s Gigafactory in Shanghai, is seen ahead of the Guangzhou auto show in the Guangdong province capital in 2019. Photo: Reuters

Tesla surprised the market on New Year’s Day when it began selling the Model Y sports-utility vehicle (SUV) with a 30 per cent discount to its presale catalogue price. Fans of the carmaker who responded with gusto were told by Tesla that they would have to wait until the second quarter to receive their deliveries.

“Most buyers of smart EVs in China are still taking a wait-and-see attitude, though Tesla has suffered a big setback in the market,” said Eric Han, a senior manager with Shanghai-based business advisory firm Suolei. “At least Tesla’s main Chinese competitors have not reaped huge benefits.”