Connect with us

News

Tesla China settles into groove with impressive Q2 market share

Tesla Made-in-China Model 3 (Source: Tesla China | Twitter)

Published

5 years ago

on

Tesla China is contributing significantly to the electric automaker’s revenue as a company. Reports now indicate that Tesla’s China-based sector accounted for nearly 25% of the company’s total revenue in the second quarter of 2020.

Tesla China accounted for $1.4 billion worth of revenue during the second quarter. The company’s Securities and Exchange Commission filing for Q2 2020 indicated the company had revenues of $6.036 billion across the United States, China, and other regions as a whole.

The company’s Chinese sector accounted for 23.2% of the company’s total revenue in the second quarter.

The company outlined the impressive performance of its Chinese sector in the SEC filing, which was led by the highly popular induction of the Model 3 into the world’s largest automotive market.

“We also expect our international manufacturing expansion to continue to drive demand,” Tesla’s SEC filing stated. “For example, Model 3 was the best-selling electric vehicle during the second quarter of 2020 in China, where Gigafactory Shanghai allows us to offer locally-produced Model 3 vehicles with industry-leading standard equipment at a lower price point than competing mid-sized premium sedans even before the impact of government or tax incentives.”

Advertisement

The electric automaker managed to outperform the estimates of Wall Street analysts in many ways. It began with 90,650 total deliveries, which was significantly more than the between 75,000 to 80,000 deliveries that Wall Street predicted.

Tesla’s revenue expectations from analysts were outshined by the company’s performance during the second quarter as well. Tesla managed to accrue nearly $900 million more in revenue than Wall Street anticipated.

The company’s performance in the Chinese market has significantly improved the Tesla’s performance across the globe. It was expected that Q2 would be a slow quarter due to factory closures. These events were supposed to halt the company’s momentum as they had posted three straight profitable quarters, but Tesla managed to continue its string of consecutive money-making months.

Tesla started delivering the Model 3 in January and will begin manufacturing the Model Y crossover starting in 2021 “at the earliest.”

The Government of Shanghai and Tesla also inked a 50-year lease on its production plant, which will increase affordability to Chinese customers. By establishing a long-term presence with Giga Shanghai, production costs will decrease, and Tesla will be able to utilize local tax benefits and avoid tariffs.

Advertisement

The company needs to pay 2.23 billion yuan, or $320 million, in taxes every year to the Chinese government. The payments must begin at the end of 2023. Tesla must also put 14.08 billion yuan, or $2.01 billion, in capital expenditure into the Giga Shanghai production plant, TechCrunch reported.

Tesla is ramping its international presence significantly with two foreign production plants: one in Asia and one in Europe. However, Giga Shanghai holds the responsibility of producing enough vehicles to manage the entire Chinese auto market, which is the largest in the world.

The company’s increasing popularity among Chinese car buyers continues to help support Tesla’s long term mission of increasing sustainability.

Tesla’s Q2 2020 SEC filing is available to read below.

Tesla SEC Filing Q2 2020 by Joey Klender on Scribd

Advertisement

Related Topics:

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

Elon Musk

Elon Musk reveals SpaceX’s target for Starship’s 10th launch

Elon Musk has revealed SpaceX’s target timeline for the next Starship launch, which will be the tenth in program history.

Published

11 hours ago

on

July 16, 2025

By

Credit: SpaceX

Elon Musk has revealed SpaceX’s target timeline for the next Starship launch, which will be the tenth in program history.

Musk says SpaceX is aiming for a timeline of roughly three weeks from now, which would come about ten weeks after the previous launch.

Coincidentally, it would bring the two launches 69 days apart, and if you know anything about Elon Musk, that would be an ideal timeline between two launches.

SpaceX is coming off a test flight in which it lost both the Super Heavy Booster and the Upper Stage in the previous launch. The Super Heavy Booster was lost six minutes and sixteen seconds into the flight, while SpaceX lost communication with the Ship at 46 minutes and 48 seconds.

Musk is aiming for the tenth test flight to take place in early August, he revealed on X:

Advertisement

This will be SpaceX’s fourth test flight of the Starship program in 2025, with each of the previous three flights bringing varying results.

IFT-7 in January brought SpaceX its second successful catch of the Super Heavy Booster in the chopstick arms of the launch tower. The ship was lost after exploding during its ascent over the Turks and Caicos Islands.

IFT-8 was on March 6, and SpaceX caught the booster once again, but the Upper Stage was once again lost.

Advertisement

The most recent flight, IFT-9, took place on May 27 and featured the first reused Super Heavy Booster. However, both the Booster and Upper Stage were lost.

The Federal Aviation Administration (FAA) hit SpaceX with a mishap investigation for Flight 9 on May 30.

Continue Reading

Elon Musk

Elon Musk confirms Tesla is already rolling out a new feature for in-car Grok

Tesla is already making in-car Grok more robust with a simple but effective feature that CEO Elon Musk says is “coming.”

Published

17 hours ago

on

July 16, 2025

By

Credit: Tesla

Tesla CEO Elon Musk has confirmed that the company will roll out a new feature for in-car Grok as it is rolling out to vehicles for the first time.

Grok was just recently added as a feature to Tesla vehicles within the past week, but owners are already requesting some small changes to make it more convenient to use.

Tesla debuts hands-free Grok AI with update 2025.26: What you need to know

The first is already on the way, Musk confirmed, as WholeMarsBlog requested a simple, but useful feature for Grok as it is used within Tesla vehicles.

Whole Mars requested that “Hey Grok” be used as a wake word, automatically activating the AI assistant without having to touch any buttons. Musk confirmed it is already in development and on the way to vehicles:

Advertisement

This feature is incredibly similar to that of “Hey Siri” with iPhones and other iOS devices. The phone will recognize your voice and hear that prompt, automatically activating Siri. Apple’s assistant will then perform whatever task it is asked to perform. It’s a simple but effective performance feature.

Grok is already getting its first reviews from owners as it rolls out to owners for the first time. It is a long time coming, too. Tesla has been hinting that Grok would be enabled in the vehicles for a while now, and it just started its initial rollout last week.

Advertisement

Grok is available in vehicles with the AMD chip and requires Premium Connectivity or a WiFi connection to use.

Continue Reading

Elon Musk

Tesla reveals key detail of Supercharger Diner, but it’s bigger than you think

Tesla has finally released one key detail about the Supercharger Diner, and it is bigger than what it appears at face-value.

Published

19 hours ago

on

July 16, 2025

By

tesla-diner-supercharger
Credit: Tesla

Tesla has revealed a key detail of its Supercharger Diner as its launch date appears to be nearing, based on what we are seeing at the site currently.

The Supercharger Diner is located on Santa Monica Boulevard in Los Angeles and was first proposed as an idea by CEO Elon Musk back in 2018. Musk envisioned a drive-in movie-style 1950s-inspired diner that would feature elements such as servers on roller skates, large movie screens, and a menu inspired by classic treats from several decades ago.

A project that first broke ground in 2023, the Supercharger Diner has been in development for over two years, as Tesla performed demolition work at the site back in February of that year.

It has slowly moved forward, and drone footage shot this week seems to show things are nearly up and running. Musk even mentioned that he had eaten at the Diner Supercharger this week.

There are still details that Tesla has yet to announce and confirm. The most important thing is regarding the menu that will be served at the diner.

Advertisement

Tesla has not hinted at what it will be making for patrons at the restaurant, but Musk commended the food and said the diner would be one of the coolest spots in LA.

However, we now have details on another important thing about the restaurant: the hours.

Images taken by Aaron Cash of ABetterTheater.com show the diner will be open 24/7, as it appears on the front doors of the diner:

Advertisement

At first thought, it seems this will operate like any other diner, as many are open for 24 hours a day. Diners typically serve large menus with numerous options, catering to the tastes and moods of anyone who walks in.

People of all walks of life eat at diners, as the food is typically affordable, tasty, and available at any hour to serve those who are night owls or those who work non-typical schedules.

However, Tesla is a bit different, and it seems that this new venture into food service could eventually transition from human servers and cooks to robots, most notably the company’s in-house project of Optimus.

Advertisement

It is something straight out of a Star Wars movie. I can think of Obi-Wan Kenobi visiting Dex in his diner in Attack of the Clones to figure out where a poison dart was sourced from:

Eventually, Optimus will likely be working as an employee in the Tesla Diner, and 24/7 operation will be performed by the humanoid robot that aims to eliminate trivial tasks from humans.

Continue Reading

Trending