Tesla Announces $4.65B in Q1 Revenue From China

According to information disclosed by Tesla to the United States Securities and Exchange Commission on Monday, the electric vehicle firm’s revenue in China in the first quarter this year totaled $4.65 billion, an increase of about 53% year-on-year compared with $3.04 billion in the same period last year.

Tesla’s revenue growth in China was mainly caused by the previous increase in production and delivery by the company’s Shanghai Gigafactory. According to statistics from the China Passenger Car Association, Tesla delivered 182,200 vehicles in the country during the first quarter of this year, accounting for 58.8% of its global delivery of 310,000 vehicles.

China currently represents Tesla’s second largest market, accounting for 24.8% of revenue in the first quarter this year. Nonetheless, the US is still Tesla’s most important market. In the first quarter of this year, the company’s revenue from the US market reached $8.734 billion, accounting for 46.56% overall.

According to the report, in the first quarter of this year, Tesla’s automobile sales revenue increased by $7.33 billion or 89% compared with the same period of last year, driven by increased production and delivery by its factories in Shanghai and California.

Tesla said that its future goal is to improve vehicle performance, reduce production costs and improve affordability. However, these plans are limited by the uncertainties in the manufacturing process, the number of concurrent international projects, and the stable supply of components. Labor shortages and the persistent COVID-19 pandemic will also have a great impact. Recently, the outbreak and lockdowns in Shanghai have caused the city’s Gigafactory to stop production for about three weeks.

SEE ALSO: Tesla Shanghai Gigafactory Resumes Work

Tesla founder Elon Musk revealed in October of last year that the output of the Shanghai Gigafactory had surpassed that of the California facility. Both of them are very important for Tesla to achieve its goal of increasing delivery by 50%. Although Tesla’s factory in Germany has started delivery and the factory in Texas will start delivery in the near future, output of new factories in their first year tends to be relatively limited, which means that Tesla’s main production capacity this year still depends on its Shanghai and California operations.