Tesla Sees Huge Surge in Car Sales from Mainland China
After facing problems in China, where the company has its Gigafactory in Shanghai, Tesla gets a surprise after the virus. The electric car manufacturer recorded a massive spike in new vehicle sales as the country escapes from the lockdown.
For weeks, mainland China was forced to enforce strict measures to flatten the coronavirus curb in the country. Since the virus was discovered in Wuhan city, the country took several weeks to contain the virus.
According to the China Passenger Car Association, the company sold approximately 10,160 new vehicles in China in March. Last month’s figures were the highest monthly car sales recorded from the largest car market.
Prior to the outbreak, the technology company aimed to produce 150,000 units of its Model 3 sedans.
Cui Dongshu, CPCA’s secretary general, said that 30% of the electric vehicles in Chine were sold by Tesla.
During the start of the coronavirus outbreak in January, the electric car manufacturer sold approximately 2,620 cars in China. While on the following month, it sold about 3,900 units, a significant increase from the month prior.
Still, the overall car sales in the whole mainland China for March 40.8% from the same period a year ago.
Since the lockdown in China eased, thousands upon thousands of people flocked towards stores and public places. The citizens were reportedly eager to once again return to their normal lives after being quarantined inside their homes.
Technology news sites also reported surges in sales of tech gadgets, and other products after the government lifted its restrictions.
Tesla’s Gigafactory in Shanghai, China is reportedly back to business and is now producing cars.
Across the Other Side of the Globe
The tables have now turned. The pandemic that once wreaked havoc in mainland China is now rampaging across the United States.
The car manufacturer’s previous dilemma in China has now happened in America. Late last month, Tesla’s production in Fremont, California halts as the country braces for the impact of the virus.
In a letter to its staff, the company’s management said that it hopes that production operation will resume by May 4. COVID-19’s impact is so devastating; it even wrecked the operations of big companies despite advance measures made available by modern technology.
In the letter, Tesla said that it will be cutting a percentage of its staff’s salary as production stops. Vice presidents and executive employees will have a 30% cut from their respective salaries.
While directors and employees in those ranges will have a 20% cut from their salaries. And then the remaining workers will reportedly face a 10% cut.
