Tesla China is expected to report a sales boost for Q3 2024 thanks to a new electric vehicle (EV) subsidy from the Chinese government.
In July, the Chinese government doubled EV subsidies, encouraging local drivers to trade in their old passenger cars. China’s National Development and Reform Commission and Ministry of Finance announced the government would offer a subsidy of $2,770 per vehicle to consumers replacing their traditional cars with EVs.
“All regional governments are encouraged to support vehicle purchase(s) for replacement purposes. As consumers dump their used cars, measures should be taken to bolster purchases of new passenger cars.”
“This China strength comes at a very opportune time for Tesla,” said Barclays analyst Dan Levy. He believes China’s new EV subsidies will help Tesla “offset ongoing weakness in the US and Europe.” Levy forecasts that Tesla will deliver 470,000 units globally in the third quarter.
Tesla is expected to report a quarterly sales increase for the third quarter, its first time for 2024, thanks to a boost in Giga Shanghai’s numbers. A group of analysts surveyed by Bloomberg predict that Tesla would report delivering around 463,900 vehicles worldwide for Q3 2024, about 7% more than last year’s third quarter.
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