Sales of electric vehicles produced by Tesla in China increased in the early months of 2026, indicating a recovery in production and deliveries from its Shanghai manufacturing facility.
Figures released by the China Passenger Car Association show that Tesla delivered 127,728 vehicles built in China during January and February. This marked an increase of more than 35 percent compared with the 93,926 units delivered in the same period of 2025.
The growth came even as manufacturing and retail activity slowed temporarily during the Lunar New Year holiday in February, a period that typically disrupts production schedules across the country.
Tesla’s Shanghai Giga factory manufactures the Tesla Model 3 sedan and the Tesla Model Y sport utility vehicle. The plant serves customers in the Chinese market and also supplies vehicles to several export destinations across Europe and the Asia-Pacific region.
Despite the rebound in Tesla’s deliveries, competition in China’s electric vehicle sector continues to intensify as domestic manufacturers introduce new technologies and expand their global presence.
Chinese automaker BYD remains one of the dominant players in the global electric vehicle industry after surpassing Tesla in overall EV sales in 2025. During the first two months of 2026, however, BYD reported a decline in deliveries compared with the same period a year earlier, although its overall volumes still remained higher.
The Chinese EV market has become increasingly competitive as manufacturers launch new models and focus on improved battery technology, faster charging systems and more affordable pricing to attract buyers.
Industry observers expect vehicle sales data for March to provide a clearer picture of demand trends once production and consumer activity fully recover after the Lunar New Year holiday.
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