Tesla’s China-made EV sales rise in January

Tesla sold 69,129 electric vehicles made in China in January, an increase of 9.3% compared with the same month last year. This marked the company’s third month of growth in a row, even as it continues to lose market share in China and Europe.

Sales of Model 3 and Model Y cars produced at Tesla’s Shanghai factory, including exports to Europe and other regions, fell by 28.9% compared with December, according to data released on Wednesday by the China Passenger Car Association.

Tesla struggled with weaker sales across major European markets last year. Stronger competition, especially from Chinese carmaker BYD (002594.SZ), has added pressure on the company. Demand in Europe has also been affected by consumer backlash following Elon Musk’s public involvement in political campaigns.

In China, Tesla’s share of the highly competitive electric vehicle market fell to 8% last year, down from 10% in 2024, despite record monthly sales of 93,843 units in December.

In January, Tesla introduced a seven-year, low-interest financing plan for Model 3 and Model Y customers in China. This move led several local competitors, including Li Auto (2015.HK), Xiaomi (1810.HK) and Xpeng (9868.HK), to launch similar financing offers.

Musk said he expects regulators in Europe and China to approve Tesla’s driver-supervised Full Self-Driving system as early as this month. Tesla is aiming to boost software-related revenue as growth in its main EV business slows.

BYD, Tesla’s largest competitor in China, reported a 30% drop in global sales in January. The decline was linked to changes in a government subsidy programme for vehicle trade-ins, which had a stronger impact on lower-priced car brands.