Tesla’s China Sales Rise Despite The Company’s Quality Issues

Tesla Inc.’s sales in China rose in May after a brief fall, providing a boost to the electric vehicle maker as it seeks to recover from its first big setback in one of its most crucial regions.

According to the China Passenger Car Association, Tesla delivered 21,936 cars to Chinese consumers in May, nearly doubling the amount sold the previous month but still well short of the over 36,000 it supplied in March. The corporation does not publish its own monthly sales data and did not reply to inquiries.

Tesla has received negative press in recent weeks due to its handling of customer complaints and perceived quality issues, which has harmed its reputation among Chinese customers.

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While Tesla’s reputation has clearly suffered, May sales figures indicate that many local buyers are sticking with the American EV brand, which began production of the Model Y at its Shanghai facility in January and is ramping up deliveries.

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Bottom line: It appears that the changes are more due to seasonality, production, and the supply chain than to a demand problem.

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