Tesla (TSLA) Stock: China EV Sales Rise for Second Straight Quarter

TLDR

• Tesla’s China-made EV sales rose 8.7% year-over-year to 85,670 units in March 2026
• That marks five consecutive months of rising sales from the Shanghai factory
• First-quarter sales jumped 23.5% year-on-year, up sharply from 1.9% growth in Q4
• Recovery in European demand was a key driver of the sales increase
• Tesla’s global Q1 deliveries are expected to rebound nearly 10% from a year-ago slump

Tesla (TSLA) stock was up 2.56% at the time of writing.

Tesla, Inc., TSLA

Tesla’s Shanghai factory had another solid month in March, with sales of Model 3 and Model Y vehicles climbing 8.7% from a year earlier. The 85,670 units sold includes both domestic Chinese deliveries and exports to Europe and other markets.

March also marked the fifth straight month of rising sales from the factory, continuing a run that started gaining momentum in late 2025.

On a monthly basis, the numbers look even stronger. Sales jumped 46.2% compared to February, according to data released Thursday by the China Passenger Car Association.

Q1 Sales Accelerate

For the full first quarter, Shanghai-made EV sales grew 23.5% year-on-year. That’s a big step up from the 1.9% growth seen in the fourth quarter of 2025.

Analysts point to recovering European demand as a key factor behind the improvement. Higher oil prices, linked to the ongoing Iran crisis, may also be giving EV makers a lift.

Tesla’s global Q1 deliveries are expected to rebound nearly 10% from a year-ago slump. That dip in early 2025 was partly driven by consumer backlash against CEO Elon Musk’s political activity.

The March results suggest demand has largely stabilized, at least in the markets served by the Shanghai plant.

Competition Remains Intense

Tesla’s position in both China and Europe is still under pressure. The company’s share of China’s EV market fell to 8% in 2024, down from 10% the year before.

In Europe, Tesla lost nearly half its market share last year as local and Chinese rivals moved in.

BYD, Tesla’s biggest Chinese rival, has kept up the pressure in Europe. However, BYD’s international growth has not been enough to offset weak performance in its home market.

Tesla has been expanding its focus beyond electric vehicles. The company is positioning solar energy, humanoid robots, and autonomous robotaxis as future growth areas.

On the supply side, Tesla is also in talks with Chinese firms to purchase $2.9 billion worth of solar equipment, according to a Reuters report from last month.

The March data from the China Passenger Car Association shows Tesla’s Shanghai output continues to hold up, even as competition across its key markets remains fierce.

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