A Monday filing showed that sales of electric vehicle company Tesla in China are now almost half of what is being sold in the US, its home country. The Elon Musk-owned electric vehicle company reported China sales of $3.11 billion in the third quarter which is 48.5 percent of the total sales in the US in the same period. The total sales recorded in the US in the third quarter was $6.41 billion. As shown in the filing the sales in China are up 41.4 percent from the previous year. Tesla Chinese share of overall sales rose to 22.6 percent in the third quarter and was up from about 20 percent a year ago.
Tesla’s electric vehicles remain one of the most famous brands in China despite the continuous amount of criticisms and somewhat apathy that Tesla continues to receive from both state and social media in China. Tesla has put some actions in place that have made its sales volume in China possible. Before the coronavirus pandemic which was a huge production challenge to a lot of companies, Tesla had opened a factory in China and delivered its first set of made-in-China Tesla vehicles to local customers this year.
While the company has started delivering its second China-made model to local customers this year, its cars Model 3 and Y continue to rank among the top three most sold cars in the new vehicle passenger car market and this ranking is according to the China Passenger Car Association.
Apart from seeing increased sales in China, the electric vehicle company had an impressive third quarter. The company posted revenue of $13.76 billion which surpassed analysts’ expectation of $13.63 billion. It is relevant to know that the electric company’s record results were majorly boosted by improved gross margins of 30.5 percent on its automotive business and a 26.6 percent increased margin in its overall business. The company recorded an increase to $12.06 billion for automotive revenue in the third quarter while costs of automotive revenue for the quarter ran up to $8.38 billion.
The electric company also joined the league of companies like Facebook and Amazon after hitting a new market capitalization of $1 trillion in New York trading on Monday, after rental company Hertz’s order of 100,000 electric vehicles.
Earlier this month, the electric company announced its plan to move its headquarters from Palo Alto, California to Austin, Texas. “From a legal perspective, there’s less of a regulatory burden in Texas. It’s a more business- and employer-friendly state in many ways. You have to jump through far fewer hoops in Texas or Florida as an employer than you do in California in terms of reporting requirements and more”, Domenic Romano, managing partner of Romano Law in New York City said regarding Tesla Headquarters move.