Tesla China electric vehicle (EV) sales plunged by more than a whopping 60% in July of 2022 compared to the performance of the renowned automaker last June.

tesla china sales july 2022, tesla, china
(Photo : Justin Sullivan/ Getty Images)
FREMONT, CA – SEPTEMBER 29: Tesla CEO Elon Musk speaks during an event to launch the new Tesla Model X Crossover SUV on September 29, 2015 in Fremont, California.

It comes as the EV maker owned by Elon Musk tries to get back to its feet after its Gigafactory in Shanghai was forced to shut down due to months-long COVID-19 lockdowns in China.

Tesla China EV Sales Slump in July

As per a news story by Electrek, the lockdown in the city of Shanghai in China has closed down the facilities of the American EV maker in the Asian country.

The restrictions in Shanghai occur as the government grapples to keep the number of COVID cases to zero, critically affecting the operations of Tesla in China in the second quarter of this year.

But despite that, the Musk-led automaker started ramping up its production last June.

In fact, it has produced thousands of EVs at the Giga Shanghai. Not to mention that it has exported hundreds of China-made vehicles in the same month.

tesla china sales july 2022, tesla, china
(Photo : Justin Sullivan / Getty Images)
CORTE MADERA, CALIFORNIA – JUNE 27: Brand new Tesla cars sit in a parking lot at a Tesla showroom on June 27, 2022 in Corte Madera, California.

To be more precise, the Giga Shanghai produced a total of 78,906 EVs last June, Electrek says in its report. And on top of that, the giant carmaker also exported 968 in the same period.

On the other hand, the sales of Tesla EVs in the Chinese market significantly plunged a month after it began ramping up its production.

The China Passenger Car Association (CPCA) recently revealed that the American automaker sold more than 28,000 vehicles last July, which is a dramatic decrease from its performance last June.

So it means that the month-to-month comparison of the EV sales of Tesla in China shows a drastic decline in numbers.

According to a recent report by CNN Business, the July sales numbers of the American EV maker in the Chinese market slump by roughly 54% compared to the same month in 2021.

Tesla Gigafactory Shanghai Upgrade to Blame?

It is worth noting, though, that Tesla has scheduled to upgrade its facilities in Shanghai in the latter part of July, which lasted until the first week of August.

tesla china sales july 2022, tesla, china
(Photo : JOHN THYS/AFP via Getty Images)
The logo marks the showroom and service center for the US automotive and energy company Tesla in Amsterdam on October 23, 2019.

The recent Gigafactory upgrades seek to increase the production capacity of the Shanghai facilities as the automaker ramps up its production.

Electrek notes in its report that the upgrades would increase the capacity of the China Gigafactory to an impressive 1 million EVs per year.

CNN reports that the EV maker disclosed in its recent earnings call with investors that the Giga Shanghai had been upgraded to embrace a better production capacity.

However, it is to note that the CPCA did not explicitly give out any explanation regarding the dramatic decrease in sales figures for Tesla last July.

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