Tesla takes a huge piece of the Chinese EV pie for March.
The short story:
- According to Green Car Reports, Teslas represented 30% of total electric vehicle sales in March for all of China.
- The growth rapidly growing market share in that country is largely due to three reasons:
- The completion of a Giga-factory within China’s borders.
- Tax exemptions from the Chinese government.
- Special agreements dealing with joint venture policies.
- Tesla currently manufactures the Model 3 at its Chinese factory but hopes to add the Model Y shortly.
So here’s the deal… if Tesla can break into the Chinese market, and it seems like it already has, then the potential for growth is unbelievable. The distance that this could place between Tesla and other electric vehicle companies is hard to calculate as we don’t know how the current world landscape will respond to EVs. My guess is that it will take other companies years to catch up. The sheer quantity of vehicles Tesla is able to produce, and now at a much higher profit margin continues to keep them in the lead.