Tesla's China made EV sales increase for the second consecutive quarter

Tesla's China made electric vehicle sales rose for the second consecutive quarter, despite increased competition from the U.S. The automaker has broadened its focus beyond EVs.

The China Passenger 'Car Association reported on Thursday that sales of Model Y and Model Y vehicles made at Tesla's Shanghai plant, including exports into Europe and other countries, increased 8.7% compared to a year ago to 85,670 cars in March.

This was the fifth consecutive month of rising sales due to a recovering European market. Analysts said that Tesla?and other EV manufacturers could also benefit from higher oil costs triggered by Iran crisis.

Sales increased by 23.5% in the period between January and March, up from 1.9% growth in the fourth quarter.

Tesla's first-quarter global deliveries are expected rise nearly 10% compared to a year ago, when the demand was impacted by a consumer backlash against Elon Musk's politics.

Tesla's market share in Europe fell by nearly half last year due to intense competition, especially from Chinese rivals. Its share of China’s EV market also dropped from 10% to 8%.

BYD, the 'biggest Chinese rival,' has been putting pressure on the U.S. EV manufacturer in Europe. However, BYD struggles in its own market have not been enough to compensate for BYD’s strong overseas growth.

Last month, it was reported that Tesla is in negotiations with Chinese firms to purchase $2.9 billion of solar equipment. Reporting by Qiaoyi Li & Ju-min Park. (Editing by William Maclean, Mark Potter and Mark Potter.

(source: Reuters)