Tesla Inc. (TSLA, Financials) had a good start to 2026 in China, as demand for its electric cars built there grew even though there was a lot of rivalry from other car makers.
According to the China Passenger Car Association, sales of Tesla cars made in China hit 127,728 units in January and February combined. This is more than 35% more than the same time last year, when 93,926 units were sold. The numbers take into consideration the usual slowness that happens during the Lunar New Year break.
The Shanghai Gigafactory makes a lot of the company’s products for China. It makes the Model 3 and Model Y for both local buyers and purchasers in Europe and other areas of Asia.
The rise shows that there is a robust market for Tesla cars, although the business still sells fewer cars than Chinese competitor BYD. In 2025, BYD became the world’s biggest seller of electric vehicles, but its deliveries fell by approximately 36% in the first two months of this year.
The electric vehicle industry in China is still quite competitive since car companies are releasing new models with better ranges, faster charging times, and lower pricing. Analysts argue that the sales numbers for March will give a clearer sense of whether Tesla’s early-year growth can keep going.
