News
Tesla Giga Shanghai posted record numbers despite weak Chinese auto market
Tesla Giga Shanghai posted record delivery numbers during an overall weak month for auto sales in China, revealing its strong hold in the local market.
Tesla China set a new record in November 2022, selling 100,291 Giga Shanghai-produced vehicles during the month. Shortly after the China Passenger Car Association (CPCA) released details of Giga Shanghai’s record sales, reports continued to claim that Tesla China would cut production in December by a notable degree.
Tesla’s rumored production cuts appear unlikely, or at least not as grave as reports would suggest. First, Tesla China officially dubbed the reports as “untrue.” Second, Giga Shanghai just hit its highest record sales last month, so why would Tesla China substantially cut back its output?
Piper Sandler Sheds Light on Tesla China
Multiple publications claimed that rising competition with Chinese EV manufacturers may lead to Tesla Giga Shanghai’s presumed production cut in December. Piper Sandler analyst Alexander Potter said Giga Shanghai would not cut production because of rising competition in the Chinese EV market.
CPCA details on Tesla China’s sales support Potter’s statement. Tesla China sold a total of 69,098 Model Y units and 31,193 Model 3 sedans in China last month. It exported precisely 37,798 vehicles from Giga Shanghai to foreign territories. This made Tesla the country’s top exporter of New Energy Vehicles (NEV) in China.
China Auto Market Status
A more recent note from Piper Sandler provided some context regarding Tesla China’s record-breaking sales last month. The CPCA released data from last month, revealing that auto retail sales dropped by 9.2% compared to 2021. Retail sales decreased by 10.5% compared to October 2022. Constraints related to COVID-19 contributed to the drop in retail sales.
“Therefore, the closure and control had an impact on both the supply and purchase of automobile stores in the automobile market. This autumn and winter saw abnormal retail sales. The downward trend continues,” stated the CPCA.
Potter pointed out that China’s car market declined in October and November–both months that usually yield solid retail sales. The Piper Sandler analyst also noted that October and November typically combine to make up 18.7% of full-year sales. Given the CPCA’s recent data, Tesla China’s performance in November appears even more impressive.
However, with the current state of the Chinese auto market, Tesla may be facing more challenges ahead.
“December is typically the strongest month of the year, historically accounting for 10.9% of full-year sales [in China], so if recent downward momentum isn’t addressed through loosening COVID restrictions, then widespread production cut may be necessary. In this context, it’s easier to understand recent murmurs re: lower production at Shanghai Gigafactory,” noted Alexander Potter.
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Elon Musk
Elon Musk estimates Tesla Semi could reach Europe next year
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.
Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.
Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.
Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.
Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.
Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.
The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets.
Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.
Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Elon Musk estimates Tesla Semi could reach Europe next year
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
