Tesla reported rising sales of China-made electric vehicles, marking a second consecutive quarter of growth despite intensifying competition.
Sales of Model 3 and Model Y vehicles produced at Tesla’s Shanghai factory, including exports, rose 8.7% year-on-year to 85,670 units in March, according to data from the China Passenger Car Association.
This marked the fifth straight month of rising sales. The increase was supported by recovering demand in Europe.
Higher oil prices linked to the Iran crisis could also be benefiting electric vehicle makers.
For the January to March period, China-made Tesla sales rose 23.5% compared with a year earlier.
This represents a sharp acceleration from the 1.9% growth recorded in the previous quarter.
Global deliveries expected to rebound
Tesla is set to report its global first-quarter delivery figures on Thursday.
Wall Street expects around 366,000 vehicles sold, up from roughly 337,000 a year earlier.
The anticipated rebound follows a weak first quarter in 2025, when Tesla reported deliveries well below expectations.
At the time, analysts had projected about 378,000 units, but actual deliveries missed consensus by more than 10% and declined 13% year-on-year.
The earlier decline was partly attributed to consumer backlash linked to CEO Elon Musk’s political views.
Competitive pressures persist
Despite recent growth, Tesla continues to face strong competition, particularly in China and Europe.
The company’s share of China’s electric vehicle market has declined to 8%, down from 10% in 2024.
In Europe, Tesla lost nearly half of its market share last year amid rising competition from local and Chinese manufacturers.
BYD remains Tesla’s biggest Chinese rival and continues to pressure the company in overseas markets, including Europe.
Europe registrations indicate demand recovery
Recent registration data points to improving demand across several European markets.
In France, Tesla registrations rose 203% year-on-year to 9,569 vehicles in March, according to the PFA industry body. This was just below the record of 9,572 units set in December 2023.
Registrations also increased significantly elsewhere. Norway recorded a 178% rise to 6,150 vehicles, while Sweden and Denmark saw increases of 144% and 96% to 1,447 and 1,784 units, respectively.
In other markets, registrations rose 72% in the Netherlands to 1,819 vehicles and 25% in Spain to 2,477, based on data from RAI and ANFAC.
For the full quarter, registrations increased 108% in France, 95% in Norway, 48% in Sweden, 50% in Denmark and 43% in Spain, while falling 23% in the Netherlands.
Tesla said in a letter to British media last month that registration trends are often skewed toward the end of each quarter due to shipping patterns.
Strategy expands beyond EVs
At the same time, Tesla is broadening its focus beyond electric vehicles.
The company is positioning solar energy, humanoid robots and autonomous robotaxis as future growth drivers.
While China-made vehicle sales and European demand show signs of recovery, Tesla’s near-term performance will remain closely tied to its upcoming delivery report and its ability to navigate rising competition across key markets.
