This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) shares edged higher by about 0.7% on Tuesday as new Chinese industry data showed battery-electric vehicle demand continued to expand in July despite a broader contraction in the country’s passenger-car market, according to China Passenger Car Association data reported Tuesday.
China’s total passenger-vehicle retail sales fell 21% year over year in July, while plug-in hybrid sales dropped 21%. Battery-electric vehicle sales, however, increased 6%, suggesting demand for fully electric models remained more resilient than other segments.
Tesla’s own July retail figures in China were not yet available. The company has seen uneven results in the market this year, with June retail sales falling 14% after a 22% increase in May. Tesla shares were up more than 1% Tuesday and remain down about 25% for the year.
Tesla is also benefiting from improving demand in some overseas markets. New Tesla registrations rose 55% in Europe during the first half of 2026, while Australian sales increased 88% through July, according to industry data cited in the report.
For Tesla, the Chinese figures offer a mixed picture: the overall auto market remains weak, but growth in battery-electric vehicles provides a more supportive backdrop for the company’s core vehicle segment.