Tesla’s China-made electric vehicle sales rebounded in early 2026, with combined deliveries for January and February rising more than 35% to 127,728 units on an adjusted basis. The increase follows seasonal adjustments related to the mid-February Lunar New Year and reflects renewed momentum for Tesla’s Shanghai Gigafactory. The facility supplies vehicles both to China’s domestic market and to export destinations across Europe and the Asia-Pacific region
China’s Robust EV Market
Data from the China Passenger Car Association (CPCA) indicates continued growth in China’s electric vehicle market despite intensifying competition among manufacturers. Although Tesla’s deliveries increased during the period, the company still trails Chinese automaker BYD in overall market share. BYD has strengthened its position through new battery technologies, including the Blade battery, which is designed to support significantly faster charging and improved safety.
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Competitive Dynamics And Global Footprint
Production at Tesla’s Shanghai facility remains one of the largest sources of EV output globally. However, BYD overtook Tesla as the world’s largest electric vehicle manufacturer in 2025, supported by strong overseas expansion and a broader product portfolio. Tesla continues to rely on exports from Shanghai to support sales growth in international markets. Recent data has also shown rising vehicle registrations across several European countries, indicating sustained demand despite increasing competition.
Emerging Competitors And Market Shifts
Competition in China’s EV market has intensified as domestic manufacturers expand their offerings. Automakers such as Geely and Xiaomi are gaining market share by introducing vehicles with competitive pricing and advanced features. In February, one Geely model outsold vehicles from both Tesla and BYD in China, while Xiaomi’s YU7 SUV surpassed Tesla’s Model Y to become one of the country’s top-selling vehicles. The CPCA expects finalized sales data for March to provide further insight into market trends following the Lunar New Year period, which typically includes new model launches and increased production activity.
