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Tesla Inc (NASDAQ:TSLA) reported $5. 13 billion in profit from China in the third quarter, up about 65% year-over-year and accounting for only about 24% of total profit. It is still the largest market.
The automaker’s profit percentage in China rose about 22. 4% in the current quarter, when it was hit by plant closures in Shanghai amid COVID-19 restrictions.
During the first nine months of 2022, Tesla’s profits in China rose 50. 4% to $13. 6 billion. Despite those positive numbers, Tesla CEO Elon Musk said last week that “some kind of recession” was occurring in China. The automaker said it would miss its vehicle. Delivery target this year.
Tesla experienced a delivery shortfall in the third quarter and now the company is showing a drop in costs for its Model 3 and Model Y cars of up to 9% in China.
The EV maker and other Chinese peers also faltered amid panic touting similar COVID-like restrictions in Guangzhou that could have an effect on production and supply chains, with new third-quarter GDP figures falling below China’s official full-year target of 5. 5%, which is already its lowest goal in 3 decades.
Tesla shares are down -3. 38% at 2:20 p. m. Et.