According to the China Passenger Car Association, Tesla's sales of China-made electric vehicles grew by 3% year-on-year in August.

In contrast, Chinese competitor BYD reported a remarkable 35.3% year-on-year increase in passenger vehicle sales in August, achieving a new monthly high of 370,854 units.

If the current sales momentum persists, Tesla could achieve its highest quarterly sales volume in China during the third quarter of 2024.

Deliveries of Tesla's Model 3 and Model Y surged by 17% from July, indicating a strong upward trend in sales.

Analyst Shi Ji from China Merchants Bank International forecasts that Tesla's retail sales volume could reach 65,000 units in August, suggesting the potential for record quarterly sales in Q3 2024 if this momentum continues.

Other local electric vehicle manufacturers, such as Leapmotor and Li Auto, also reported higher sales figures in August.

Several local governments have endorsed Tesla vehicles for official purchases, further enhancing the company's market presence.

Tesla's impressive sales growth in China is largely driven by extended incentives for local buyers and increased government support.

To attract cautious buyers amid economic challenges, Tesla has been offering a zero-interest financing plan for up to five years since April.

In April, China's top auto industry association confirmed that Tesla's data collection practices comply with regulations, allowing their vehicles access to previously restricted government compounds.

Despite downsizing its local sales force as part of global layoffs, Tesla's sales in China are on an upward trajectory for the third quarter.

In July, Tesla experienced a significant 78% year-on-year increase in deliveries in tier-three cities, along with a 47% increase in second-tier cities like Hangzhou and Nanjing.