Did they? Not only is national demand nowhere near enough to use up the Shanghai production, but they're having to export MIC vehicles and adding Model Y production. All of this with strong government backing of Tesla (as Musk said "the same as any Chinese company") and Chinese banks being told to accept any loan for a Tesla vehicle. Despite that they've had more price cuts than quarters and demand does not show any signs of improvement.

This also on the back of the ticking time bomb that is their Shanghai contract. We should probably wait until the end of 2023 to see if Tesla "succeeds" in China.