Tesla sales perk up as Chinese buyers tap higher EV subsidy

SAN FRANCISCO - Tesla is expected to post its first quarterly sales increase in 2024 after car buyers in China, the world's largest electric vehicle (EV) market, seized on a sweetened government incentive.

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The carmaker likely delivered around 463,900 cars worldwide in the third quarter of 2024, roughly 7 per cent more than the same period in 2023, according to analysts surveyed by Bloomberg.

China's government recently doubled a subsidy encouraging drivers to trade in older cars for electric models, which helped boost demand in the last several months.

"This China strength comes at a very opportune time for Tesla," wrote analyst Dan Levy of Barclays, who estimates Tesla delivered 470,000 units globally in the third quarter.

It is "helping to offset ongoing weakness in the US and Europe". Nine months into a year in which Tesla has warned it may increase sales at a notably lower rate, the EV maker needs to pick up the pace to exceed the 1.8 million cars it delivered in 2023.