Tesla, Inc. has intensified its marketing efforts in China to boost sales during the year-end car-buying season. The company’s vice president of external affairs, Grace Tao, has emphasized the safety of Tesla vehicles in a recent Weibo post.
Safety Credentials
Tao highlighted the top ratings received by the Model 3, including five-star ratings on both the China Electric Vehicle Fire Safety Index and Automotive Fire Safety certification. This underscores the brand’s safety credentials and aims to reassure customers of the vehicle’s reliability.
Promotional Incentives
Tesla has been offering various incentives to promote car purchases and capitalize on China’s auto consumption stimulus. One such incentive is a chance to win a tour of the company’s Giga Shanghai factory. This marks a strategic move to increase sales and tap into the growing demand for electric vehicles in China.
Giga Shanghai Factory
The Giga Shanghai factory is Tesla’s largest by production volume, with an estimated annual output exceeding 950,000 vehicles. The factory manufactures the Model 3 and Model Y for both domestic and international markets, positioning Tesla as a leading player in the global electric vehicle market.
Sales Targets and Performance
Tesla has set ambitious targets for its end-of-year sales, but some analysts have raised concerns about the company’s ability to meet these targets. According to researcher Troy Teslike, Tesla might not touch its global delivery target this year due to a drop in sales in the U.S. and Europe.
Delivery Performance
In the third quarter, Tesla reported deliveries of 462,890 vehicles, up 6.4% year-over-year and up 4.3% quarter-over-quarter. While this represents a significant increase, the company must sustain this momentum to achieve its annual targets.
Market Performance
Tesla shares have been trading flat, with prices holding steady at $351.34. This is despite concerns about the company’s ability to meet its global delivery target and the competitive landscape of the electric vehicle market.