Tesla Inc. has reported its highest-ever quarter for shipments in China, as deliveries from its Shanghai factory increased for the third consecutive month. According to preliminary data from China’s Passenger Car Association, the automaker shipped approximately 88,321 Model 3 sedans and Model Y sport utility vehicles in September, reflecting a 19% increase compared to the same month last year. This surge brought the total deliveries for the third quarter to 249,135, surpassing the previous record of 248,686 set in the last quarter of 2023, based on calculations by Bloomberg.

Despite the significant rise in China sales, Tesla's global third-quarter deliveries of 462,890 vehicles fell slightly short of the 463,900 expected by analysts. Chief Executive Officer Elon Musk has generated excitement around the upcoming launch of a long-awaited robotaxi and other new products, which he believes will propel the company into its next growth phase. The company and other electric vehicle manufacturers in China have benefited from a government subsidy of 20,000 yuan ($2,830) aimed at encouraging drivers to trade in their old vehicles for new EVs. This momentum is expected to carry on into October, bolstered by an economic stimulus package released in late September and the recent National Day holiday, which saw a surge of visitors in car showrooms.