Tesla Model S Sales Booming In China

3 years ago by Mike Anthony 30

Tesla Model S In China

Tesla Model S In China

Tesla Model S Design Studio In China - Company Owned & Operated

Tesla Model S Design Studio In China – Company Owned & Operated

The Tesla Model S was recently made available to China. Right after its availability, sales started strong and apparently picked up even further afterwards.

Tesla predicted 7,500 Model S sold worldwide in Q2, but Tesla exceeded that to come in at exactly 7,546 Model S sold. Approximately 1,000 of those Model S sold in Q2 were sold in China, according to Brian Johnson of Barclays PLC.

As Bloomberg reports:

“Initial deliveries into China appear to have been successful,” said Andrea James, a Minneapolis-based analyst for Dougherty & Co. who rates Tesla a buy.”

1,000 Model S EVs sold in a single quarter in China seems a respectable figure to us.

In regards to Tesla’s upcoming Gigafactory and production, James Albertine, an equity analyst with Stifel, Nicolaus & Co, stated:

“Tesla has enough global runway with respect to recently tapped or altogether untapped markets to continue a steady production ramp of Model S and Model X units well into 2015 as the Gigafactory breaks ground.”

Source: Bloomberg

 

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30 responses to "Tesla Model S Sales Booming In China"

  1. Mikael says:

    The numbers I’ve seen have been 1500 total and 1000 of those in June.

    I expect to see at least 1000 per month for China during the next two quarters.

    1. See Through says:

      It imported over 1500 in Q2, but only delivered 1000. 1000 sales in 10 months can hardly be called booming.

      1. Philip says:

        Ahh, See Through, determined as ever to misunderstand everything you read.

  2. Bloggin says:

    Nice Job Tesla!

  3. Chris O says:

    Tesla expects to deliver a 100K units in 2015 so that Chinese market had better be pretty strong!

    1. Rob Stark says:

      No,Tesla expects to exit 2015 at a run rate of 100k. AKA It expects to make 2k units per week in Dec 2015.

      Elon said at least 65k units in 2015.

      Tesla graphs used by Tesla CTO JB Staubel say 75k units in 2015.

    2. Bonaire says:

      Word mumbo jumbo got you too. I doubt 55,000 is possible next year. They need to do 8000 in a quarter first, then again, before doing more next year. I cannot see 35k this year either.

  4. DaveMart says:

    It looks like Tesla sold 304 in July:
    http://www.teslamotorsclub.com/showthread.php/28966-China-Market-situation-and-outlook/page45

    I wouldn’t really call their figures in China so far a boom.

    It is not a complete bust either, but boom is way over the top based on the first few months.

    1. Boris says:

      It’s simply too early to tell, we’ll see at this time next year…

      1. Bonaire says:

        Or the next year. Tesla is about the future. Always. Never about the present.

        1. Chris O says:

          No, that would be hydrogen.

        2. Boris says:

          Short?

    2. Jouni Valkonen says:

      Dave, Tesla is supply limited. It sells exactly as many cars as it chooses to deliver. If it delivers lots of cars into China, then it means that Tesla delivers less cars into other global markets.

      Tesla has not only scratched the surface and more than 90 % of its potential customers have not yet even heard of the car seriously. Not to mention that they had test driven the car.

      1. DaveMart says:

        Tesla claims it is supply limited.
        There is a difference.

        That supply limit seems to have hit hard in Germany, where there are zero subsidies, and even harder in places like Italy.

        Norway however with its massive subsidies and perks seems to have weathered the shortage of supply remarkably well.

        I would sell you a bridge, but I currently have a supply shortage.

        1. Chris O says:

          It’s a global market. If sales had been better in Germany Tesla would have had to delay the Chinese market. Globally it’s very clear to anyone who isn’t determined to give a sour,negative spin to whatever Tesla is doing, (say, because they are hydrogen evangelists) that Tesla is supply limited.

          1. Jouni Valkonen says:

            Indeed, Dave believes into hydrogen fuel cell cars and this pretty much proves that it is not necessary to take him seriously.

            Anyone who is even remotely aware of the technology understand that the theoretical best performance of hydrogen car is worse than today’s battery technology. And battery tech has a lot of room to improve, still. So, even if fuel cells were free, they probably could not compete with today’s battery electric cars. This is the sad fact of fuel cell techology.

            If fuel cells had any promise, Toyota would introduce fuel cell into their most expensive Lexus. But of course they do not do that, because first of all, Governments have no interestes to subsidize expensive cars and secondly fuel cell cars are inferior to ICE cars. So it does not make sense to try to sell fuel cell cars for those who selects their car by the standards of quality — not price.

            1. DaveMart says:

              For the record my order of preference would be:

              Through the road inductive charging.
              It makes no sense to carry around more weight than can be helped.

              Battery electric cars charged by nuclear for baseload, as that really does provide low carbon energy at nights when the cars really are charged, with solar in some large quantity in areas which are far enough south to make that reasonable, which includes the whole of the contiguous states in the US but does not include Germany or the UK where it is absurd.

              Fuel cell vehicles – if the insistence is to use vast quantities of renewables above those which the grid can reasonably sustain in areas where summer demand is greater than winter, you have to have storage.

              In the quantities needed, that means hydrogen.
              Those who want lots and lots of renewables and no nuclear are willing the ends without the means if they discount hydrogen.

              Since I don’t rule the world I try to evaluate every proposal on its own merits, and in any case doubt that we will have one single solution, but will instead combine many.

              So if you are going to write about what others think instead of confining yourself to stating your own ideas, at least get it right.

              I defend every view which I think is wrongly attacked, as I did for instance on the ludicrous claims about the Tesla running our of fuel all the time or its batteries exploding.

              You might not like the fact that I also countered ridiculous claims that with anything like the present grid fuel cell cars are vastly less efficient than BEVs, or that people are running their cars on solar when they are running it on the grid, and happen to also have a solar array, but that is the way it goes.

              That does not imply undying support for the technology, merely a dislike of deliberate FUD.

          2. DaveMart says:

            Its a poor argument where it has to be awitched to an entirely different subject.

            The issue is Tesla sales, and their claim that the limit is in supply, not in demand.

            As far as I can see, the figures do not bear that out, or at least the claim is dubious.

            Do you have anything which is actually relevant to the argument to say?

            Or are you simply convinced that we should take every word that someone is selling the car as Gospel?

        2. Jouni Valkonen says:

          Tesla has estimated to deliver in Germany about 200 cars per week. Obviously they have not yet even tried. It makes somewhat economic sense to prioritize those countries that have active subsidies, because typically subsidies are expiring at fast phase.

          Like I said, if Tesla delivers cars into Germany, then it means that it delivers less cars into China. At this moment Tesla is expanding its production capacity by about 50 % per year. It is just not possible to expand production capacity any faster.

  5. Rob Stark says:

    There is limited geographical availability in China right now.

    Only Tesla has a clue at how demand is looking outside the cities where Tesla is not available by the inquiries made by potential Chinese customers. Even they don’ know for certain.

    Deliveries for a production constrained company does not really answer the question.

    Like I have posted many times either Tesla delivers at a rate of 50k per year in 4Q2014 and everything is fine or it does not and there is a problem.

    1. Bonaire says:

      Shanghai even has no means for incentives for Tesla. They favor local province manufacturers first. Shanghai is a huge city.

    2. See Through says:

      Tesla has always been available to every buyer in China. Remember the guy who smashed his Tesla? He was not from Beijing or Shanghai.

  6. ModernMarvelFan says:

    All the Rich Chinese are pretty much living in Beijing or Shanghai…

    That is where the market is.

  7. jmac says:

    Rob Stark said:

    “Like I have posted many times either Tesla delivers at a rate of 50k per year in 4Q2014 and everything is fine or it does not and there is a problem.”

    I assume that you are a Tesla “insider” who knows for a certainty that Tesla will be in deep do-do if the production rate is not at 1000 per week at the end of 2014.

    Please explain yourself. All public companies have a stock prospectus that states the goals of the company under the category of “Forward Looking Statements”

    Quite frankly, I don’t think Tesla will collapse, if at the end of 2014 weekly production is only 850 units.

  8. Jouni Valkonen says:

    I guess that the total stabilized demand for Model S/X in China is about 50k – 100k cars per year.

    1. See Through says:

      What’s the basis of your guess?
      Likewise, what if I guess 2K-4K? How will you disprove that?

  9. Ocean Railroader says:

    The reality is that the Teslas need to be seen on the highway first by people who would want to buy them. In that as more and more people see them driving on the highway people would be more willing to buy them.

  10. Anton Wahlman says:

    Reality check: If sales are only 1,000 per month in China, they will miss their overall sales guidance. They will have to do quite a bit better than that, starting already between now and the end of 2014, and then growing that a lot more in 2015. I have no idea whether this is feasible. However, with sales in the US down and Europe at best flat, doing only 1,000 per month in China does not enable you to sell 35,000 cars overall in 2014 or 60,000-65,000 in 2015. We shall see.

  11. jmac says:

    So what ??? So, Tesla doesn’t make it’s stated goals…. So what ?

    The other car companies seldom do either.

    1. See Through says:

      That’s a $30 billion dollar question! Then, it will be valued like other car companies! And Tesla won’t like that.

      Tesla might just go the dealer route in Q4; give its buyers Black Friday deals. And call that ‘doing the right thing for the waiting customers’. Setting up new examples of customer service. Blame it on govt regulations to not let them sell, blah blah blah.