Tesla Sets Another Production Record In China Despite Numerous Challenges

Tesla has recently been facing a difficult time in China with sustained FUD (fear, uncertainty, & doubt) attacks directed at the company claiming brake and unintended acceleration issues.

The FUD attacks have even gone so far as to claim Tesla vehicles in China have been banned from certain highways due to brake issues.

The attacks have even forced Tesla to issue a “deep apology” to the Chinese government and Chinese consumers.

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A few days ago, Tesla also had to recall 285,000 Model 3 and Y vehicles in the world’s largest auto market to decrease the likelihood of drivers unintentionally activating the vehicles autopilot system.

Although given Tesla’s high-tech nature, the recall only requires owners to upgrade the software in their vehicles remotely and do not quire them to bring their cars to a service center.

However, despite the sustained pressure Tesla is facing in China, the company continues to set record delivery numbers.

According to the data that came out via China Passenger Car Association today, Tesla produced 36,861 vehicles just in the month of May.

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The deliveries consisted of 21,692 Model 3s and 15,169, Model Ys. This is a 21% growth month over month and is even higher than the production record set back in March when Tesla produced 35,478.

Tesla MIC May production at 36,861, ⬆️55.4% YoY, ⬆️20.9% MoM.Model 3: 21,692, ⬇️3.3% YoY, ⬇️2.0% MoM.Model Y: 15,169, ⬆️81.5% MoM.(GASGOO) pic.twitter.com/2K9KnjZuYF— Moneyball (@DKurac) June 29, 2021

If Tesla can sustain this production ran rate in China for a whole year, it will mean production at Giga Shanghai might overtake Tesla’s Fremont California plant in just two and a half years after the start of construction.

Tesla’s May delivery number in China will also likely put a stop to the narrative which began when in April China delivery fell by 26% as compared to March.

When the April numbers came out individuals who gain to profit from Tesla’s decline claimed the slew of negative press has permanently damaged Tesla’s brand in China, however, as we can see from the May numbers Tesla still remains overwhelmingly popular in the world’s largest EV market.

So what do you think? Does Tesla setting a new production record in China mean the EV maker is largely unaffected by the FUD attacks? Or do you think this is a temporary fluke and Tesla’s popularity in China will progressively wane? Let me know your thoughts down in the comments below.

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Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.