Tesla’s China-made electric vehicle sales grew by 3% YoY in August, with deliveries of Model 3 and Model Y vehicles rising 17% from July. Despite this growth, Chinese competitor BYD saw a 35.3% YoY increase in passenger vehicle sales, setting a new monthly record with 370,854 units. Other local EV makers like Leapmotor and Li Auto also reported higher sales. Tesla’s success in China, despite global layoffs, has been bolstered by extended buyer incentives and increased support from local governments. With strong sales growth in smaller cities and favorable financing options, Tesla is poised to potentially achieve its highest quarterly sales volume in China in the third quarter of 2024.