Wall Street projections indicate that Tesla is expected to report an 8% rise in third-quarter deliveries of its electric vehicles, driven by attractive financing choices and prolonged incentives in China, the world’s largest auto market. As a result of the faltering Chinese economy and increasing competition from domestic Chinese companies like BYD, Tesla launched a series of promotional offers this spring, including insurance packages, price reductions on select paint options, and a zero-interest loan with a five-year term.
Data from the China Passenger Car Association indicates that after two consecutive quarters of declining deliveries, this helped the American manufacturer increase sales in July and August.
The trend remained throughout the quarter, according to experts surveyed by LSEG, and 12 of them expected that the Elon Musk-led corporation would deliver 469,828 automobiles—its largest third quarter ever—up from about 435,000 cars a year earlier.
China, which accounts for one-third of Tesla’s sales, is a major growth engine for the company, according to Scott Acheychek, COO of REX Financial, an exchange-traded fund provider that tracks the success of Tesla’s stock.
Analysts at Deutsche Bank predict that Tesla will ship about 139,000 Model 3 sedans, 296,400 Model Y SUVs, 13,350 larger Model S sedans and Model X SUVs combined, and about 13,500 Cybertruck trucks in the third quarter.
The improvement in sales in China was also aided by increased government subsidies aimed at encouraging people to convert from gas-guzzling to battery-powered automobiles.
