Behind Tesla's surprising China growth last month is the future of EVs

Plus, the next stage of geoengineering won't be so easy

In today’s edition:

— Tesla surprised investors with growth in China in November as BYD faltered. Here’s why.

— The next stage of geoengineering won’t be so easy

— Climate change is killing cocoa crops. Here’s how we’ll get our chocolate in the near future

— Trump exempts coal used to make steel from Clean Air Act restrictions on harmful pollution

— Global energy efficiency improved this year but remains behind schedule, says IEA

2026 Tesla Model Y Long Range. Photo: Tesla.

Tesla surprised investors Tuesday with a rare gain in sales in China in November, only its third monthly gain this year, as it benefitted from expiring tax credits there at the end of the year, but also a factor that many EV skeptics have overlooked — improved technology.

The company sold more than 86,700 vehicles in China in November, up 10% on last year and the second-best month of this year for Tesla TSLA 0.00%↑, while at the same time Chinese rival BYD saw sales fall 5%.

While expiring tax credits helped and should help again before they expire at the end of December, it was really the company’s improved product that drove the gains. Tesla introduced a new, long-range Model Y SUV to complement a similar long-range sedan it launched earlier, following a rollout of both in Australia.

The new range is 821 kilometers, or more than 510 miles, which is almost twice what many EVs currently get. The gains indicate that the next level of competition in EVs might soon shift back from price cuts to product enhancements, especially range.

Tesla shares were mixed Tuesday after ‘Big Short’ investor Michael Burry questioned its value in a weekend blog post. It remains about 5% higher year-to-date after a roller-coaster ride. But investors should take heart from the China sales that Tesla CEO Elon Musk hasn’t completely shifted his mindset to robotaxis.

Sometimes investors forget that the models of EVs on the road these days are going to seem very primitive in a decade or two. Especially with regard to driving range and charging technologies. It’s still been less than 20 years since our iPhones were introduced, for example.

And the gains show that in EV sales these days, it’s not all about tax subsidies. People still buy cars for performance.

If you have ideas or suggestions for us, contact me directly at
dcallaway@callawayclimateinsights.com.

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Tuesday’s subscriber insights

Sunset over the Pacific Ocean as seen from the mountaintop Las Campanas Observatory in Chile. Photo: Hossam Behery/flickr.

The next stage of geoengineering won’t be so easy