Tesla’s China-made EV sales rise for second straight quarter
Overview of Tesla’s Recent Performance in China and Global Markets
BEIJING, April 2 (Reuters) – Tesla’s China-made electric vehicle sales rose for a second consecutive quarter, holding up despite intensifying competition as the U.S. automaker broadened its focus beyond EVs.
Sales Figures and Market Trends
Sales of Model 3 and Model Y cars made in Tesla’s Shanghai factory, including exports to Europe and other markets, rose 8.7% from a year earlier to 85,670 vehicles in March, data from the China Passenger Car Association showed on Thursday.
That marked a fifth straight month of rising sales, driven by recovering European demand. Analysts also said Tesla and other EV makers could benefit from higher oil prices triggered by the Iran crisis.
Quarterly Performance
For the January-March period, sales increased 23.5% year on year, accelerating from a 1.9% rise in the fourth quarter.
Tesla’s global first-quarter deliveries are expected to rebound nearly 10% from a year-earlier slump, when a backlash by some consumers against CEO Elon Musk’s political views weighed on demand.
Competition and Market Share
Facing intense competition especially from Chinese rivals, Tesla lost nearly half its European market share last year, while its share of China’s EV market fell to 8% from 10% in 2024.
Rivalry with BYD
Its biggest Chinese rival, BYD, has continued to pressure the U.S. EV maker in Europe, though strong overseas growth has been insufficient to offset BYD’s struggles in its home market.
Diversification and Future Growth
Tesla, which is positioning solar energy, humanoid robots, and autonomous robotaxis as future pillars of growth, is in talks with Chinese firms to buy $2.9 billion worth of solar equipment, Reuters reported last month.
Reporting Credits
(Reporting by Qiaoyi Li and Ju-min Park. Editing by William Maclean and Mark Potter)
