Faster deliveries from Tesla in China near the end of the year are expected to allow more local consumers to take advantage of the expiring state purchase subsidies.

(Vehicle information displayed on Tesla's China website on October 24.)

Faster deliveries by Tesla in China near the end of the year are expected to allow more local consumers to take advantage of the subsidies.

It's worth noting that Tesla typically produces vehicles for export in the first half of each quarter, with vehicles produced in the second half mainly for local delivery.

Tesla China's wholesale sales in October were 71,704, including 54,504 units exported, according to data released by the China Passenger Car Association (CPCA) on November 8.

That export volume was a record high, up 34.03 percent from 40,666 units a year ago and up 887.03 percent from 5,522 units in September.

Tesla is expected to see a significant boost in sales in China by the end of the year as the company accelerates deliveries to local consumers in November and December.

Earlier this month, data showed that Tesla vehicles registered 11,195 insurance units in China in the first week of November and 13,939 in the second week.

In October, Tesla's Shanghai plant produced 87,706 Model 3s and Model Ys but delivered 71,704, leaving a gap of 16,002 China-made vehicles in inventory, Reuters said in a November 10 report, citing data from China Merchants Bank International (CMBI).

That's the largest gap between production and sales since Tesla's Shanghai plant opened in late 2019, the brokerage's data show.

Notably, Tesla has taken steps to digest that inventory earlier this month.

On November 8, Tesla announced that between November 8 and December 31, consumers who buy Model 3 and Model Y that have already been produced and buy car insurance from Tesla's insurance partners will receive a discount of up to RMB 8,000 on the final payment.