Tesla’s Q1 Revenue in China Reaches $4.89B, YoY Increase of over 5%
Tesla’s Q1 total revenue was $23.329 billion, as per documents submitted to the US Securities and Exchange Commission (SEC) on April 24th. This marks a year-on-year increase of 24%. Notably, Tesla’s revenue in China in Q1 amounted to $4.891 billion with a year-on-year growth rate of 5.18%.
According to the documents, Tesla’s primary market is still the United States. In Q1, its sales revenue in the US increased by 28.77% year-on-year and reached $11.247 billion. The Chinese market accounted for 20.97% of global revenue in Q1, slightly lower than its share of 22.27% for the full year of 2022.
At the start of this year, Tesla initiated a worldwide price reduction that had an impact on its profit margin. Nonetheless, CEO Elon Musk stressed during the earnings call that their focus is on sales volume rather than profit. He believes that prioritizing higher sales and larger fleet retention is more beneficial than lower sales and increased profits. It’s anticipated that Tesla will manufacture 2 million vehicles by 2023.
Tesla’s latest delivery data reveals that it sold 422,900 electric vehicles in the first quarter, marking a 4% increase from the previous quarter and a year-on-year surge of 36%. Meanwhile, according to figures from the China Passenger Car Association (CPCA), Tesla’s total sales volume in China for Q1 was 229,300 units – up by 21% compared to last year. This suggests that more than half of its production capacity came from the Shanghai Gigafactory.
SEE ALSO: Tesla Refutes Rumored Price Cuts in Chinese Mainland Market
Tesla has begun producing in Shanghai a version of the Model Y to be sold in Canada this year, the first time it will ship cars to North America from China, Reuters reported.
Tesla’s energy factory in Shanghai, which produces Megapack, could be a new source of revenue growth for the company in the Chinese market. In fact, Tesla’s energy revenue has already increased by 148% year-on-year to $1.53 billion in the first quarter and has become a significant contributor to Tesla’s overall revenue stream.