Tesla Sees Over $1 Billion In China Sales Revenue Last Year

Last year Tesla saw the strong sales results in China it had originally hoped since entering the country in 2014.

In a U.S. regulatory filing, the electric automaker reported making more than $1 billion in revenue in that market last year. That made for more than 15 percent of Tesla’s revenue last year of over $7 billion.

CEO Elon Musk had said China will someday become Tesla’s largest market.

As for now it’s the U.S., with sales more than doubling last year to $4.2 billion.

The company had what looked like a strong start in 2014, but saw sales fall by a third in China during 2015. Factors influencing the market that year were slow vehicle deliveries; customer orders that didn’t result in deliveries, and that the Tesla CEO called coming from “speculators;” and issues with charging that Musk blamed on his China sales staff.

There was also speculation that Chinese consumers preferred more affordable and small electric vehicles built by Chinese manufacturers, as China started seeing happening in dramatic sales growth of “new energy vehicles.”

The luxury vehicle sales side has been doing very well, too, as upscale consumers showed interest in buying them. That seems to be assisting Tesla, and may have encouraged Daimler to announce last year that it will be selling all-electric vehicles with the Mercedes brand in China.

Generous government subsidies encouraged Daimler to enter the market, and Tesla is tapping into these incentives, too.

SEE ALSO:  Daimler Will Be Launching All-Electric Mercedes Models in China Market

Tesla is working with the Chinese government to alleviate charging concerns. The company said it will introduce converters that owners can used to power up their electric vehicles at state-run charging points.

Tesla had plans in place to build a factory in China, a person close to the matter told Bloomberg last year. That’s yet to happen, though the company had announced it would start the process during 2016.

Automotive News also reported on Tesla’s revenue performance broken out by its subsidiaries. More than 97 percent of total corporate revenue is coming from automotive, with rest coming through SolarCity and Tesla Energy.

In the regulatory filing, Tesla also reported that that SolarCity had 12,243 employees at the end of 2016. That was a 20 percent cut from the 15,273 employees that the solar power company had in 2015.

Automotive News


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