Finance
Tesla's China-Made Ev Sales Extend Gains Despite Industry Slowdown
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
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Tesla's China-made EV sales rose 9.3% in January, marking a third month of growth. However, deliveries from its Shanghai plant fell 28.9% from December.
Tesla's Sales of China-Made EVs Continue to Rise Amid Market Challenges
Tesla's Performance in the Chinese EV Market
BEIJING, Feb 4 (Reuters) - Tesla's China-made electric vehicle sales rose for a third-straight month in January, even as China's EV sales and exports were slow amid weak domestic demand.
Sales Growth and Market Competition
Deliveries of Model 3 and Model Y vehicles made at Tesla's Shanghai plant, including exports to Europe and other markets, were up 9.3% from a year-ago period, extending gains for a third consecutive month, data from the China Passenger Car Association showed on Wednesday.
Challenges Facing the EV Sector
For the whole of 2025, its China-made EV sales slid 7.1% as the U.S. automaker grappled with declining sales in major European markets while its share of China's fiercely competitive EV market fell to 8% from 10% in 2024.
Strategies to Attract Consumers
Musk expects Europe and China to approve its driver-supervised Full Self-Driving system as early as this month, as Tesla looks to increase software revenue amid a slowdown in its core EV business.
The whole sector was faring poorly though, with China's EV sales and exports estimated to grow by 1% year-on-year last month, down sharply from a combined 25% rise in 2025, per CPCA data.
The front-loading of car purchases at the end of last year weighed on January domestic sales, which was offset nonetheless by exports, the association said.
BYD, which is Tesla's biggest Chinese competitor, reported a 30% decline in global sales in January, as a revised government scheme of subsidising auto trade-ins weighed on budget car brands.
Some automakers still managed to post record January EV sales and exports, including Geely, Seres and Leapmotor.
To woo consumers amid stagnant demand, at least 10 car brands including Xiaomi, Xpeng and Dongfeng Nissan have rolled out longer-term financing plans after Tesla made a first-of-its-kind seven-year offer to customers in China.
(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by Christopher Cushing, Sherry Jacob-Phillips and Sharon Singleton)
Key Takeaways
- •Tesla's China-made EV sales increased by 9.3% year-on-year in January.
- •The sales growth marks the third consecutive month of gains.
- •Deliveries of Model 3 and Model Y from Shanghai decreased by 28.9% from December.
- •Tesla faces shrinking market share in China and Europe.
- •Exports from Shanghai include deliveries to Europe and other markets.
Frequently Asked Questions about Tesla's China-made EV sales extend gains despite industry slowdown
1What is an electric vehicle?
An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of traditional fuels like gasoline or diesel, using electric motors and batteries.
2What are sales figures?
Sales figures refer to the numerical data that represent the quantity of products sold within a specific period, often used to analyze market performance.
3What is a year-over-year (y/y) comparison?
A year-over-year (y/y) comparison measures the change in a specific metric, such as sales or revenue, over a one-year period to assess growth or decline.
4What is the significance of sustainability in business?
Sustainability in business refers to practices that meet current needs without compromising future generations' ability to meet theirs, often focusing on environmental and social responsibility.