All eyes on Tesla, the recovery in China — rumors of a huge backlog

Tesla, like many other automakers, are struggling to get the operations of something like normal within the next few months in order to save its second quarter financially.

For the California-based manufacturer of cars, China is going to be very important in this quarter, and there are rumors that Tesla is enjoying a huge backlog of orders in the market.

According to the registration numbers, Tesla only delivered to more than 3,000 cars in China in the month of April.

Despite his Shanghai Gigafactory according to reports, the production of 3,000 vehicles per week, and the Chinese car market recovering very well after the pandemic.

However, Tesla’s sales in China were adversely impacted in April due to the country’s modification of their EV incentives, which made the Model of 3 ineligible due to their starting price.

In May, the automaker has managed to reduce the price of the Model 3 in order to again be eligible for the country’s EV incentives.

In addition, it is very likely that many customers decided to wait for the longer-range version of the Model 3, which Tesla announced in early April.

Tesla has just started deliveries of the new version of the made-in-China Model 3 last week.

There are reports coming out of China, said that Tesla has accumulated a huge backlog of 15,000 orders for the Model 3 Long-range RWD.

Electrek to Take

While the Tesla’s performance in April in China had some people worried, I think they are currently in a great position to finish the quarter strong.

With the base Model 3 now cheaper than ever with the lowest price and EV incentives, Tesla likely got an increase in orders for that at the beginning of May.

At the top of the same, if the rumor of delay for the Model 3 Long-range, it’s true, and it doesn’t sound ridiculous, it would put Tesla in a great position to sell all that can be done in China in May and June.

I can see Tesla the delivery of 22,000 to 25,000 cars in May and June, bringing the quarter to a total of 25,000 to 28,000 vehicles in China.

It is likely going to be more than all of Tesla’s other markets combined in the Q2, but now I can see Tesla, reaching more than 40,000 deliveries during the second quarter, which would be great, considering the circumstances.

The good news is that Tesla’s current demand in China is likely going to shed the Q3, which could mean more than 40,000 cars in China during the period. If we begin to see a recovery in other markets, at that time, Tesla could be returning to growth at the end of the year, which would be awesome with the current state of the economy.

What do you think? Let us know in the comments section below.

FTC: we use income auto affiliate links. More.

Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Check Also

New Ford F-150 with built-in generator, over the air upgrades

2019 Ford F-150 Limited pickup Mack Hogan | CNBC The importance of a new F-150 …