What's going on?

Data out over the weekend showed that Tesla delivered a record number of cars in China last month.

What does this mean?

Musk might’ve been licking his wounds after last quarter�s�disappointing�global deliveries report, but delivering a record 83,000 EVs in the world�s biggest auto market last month might turn his frown upside down. That�s not to say the bumper showing has come as a complete bolt from the blue: there were a couple of key catalysts at play. For one, Tesla�s factory in Shanghai was recently upgraded, boosting the number of cars it can produce each week by 30%. And for another, the company started wooing Chinese customers with insurance incentives in September, which have appealed to drivers who were already sick of rising fuel costs.

Why should I care?

The bigger picture: You win some, you lose some.
Tesla might be making strides in China, but its competitors are doing their damnedest to edge into the firm�s other strongholds. BYD � the world�s third most valuable car company after Toyota and Tesla � recently unveiled plans to launch in Europe, an early step in its ambitious global expansion. And Chinese firm Nio wants a slice of that sweet European pie too, announcing last week that � after a year of sales in Norway � it now plans to sell cars throughout the continent.

Zooming out: China�s not so hot right now.
It�s no surprise that Tesla�s Chinese rivals are looking to expand overseas with the economy in tatters. Data out over the weekend showed that China�s services industry shrank for the first time in four months in September, as the country�s zero-Covid strategy took a toll on consumer spending. And with the current government due to be handed a fresh five-year leadership term this week, it doesn�t look like that policy�s going to change any time soon.