China-built Tesla EV sales increase 9.3% in January

Tesla sold 69,129 electric vehicles made in China in January, a 9.3 per cent increase from a year earlier, marking its third straight month of growth even as the carmaker continues to lose ground in key markets such as China and Europe.

Sales of Model 3 and Model Y vehicles produced at Tesla’s Shanghai factory, including exports to Europe and other regions, fell 28.9 per cent from December, according to data released on Wednesday by the China Passenger Car Association. The company faced weakening demand across major European markets through last year, as competition intensified, particularly from Chinese rival BYD. Sales in the region were further affected by consumer backlash following Tesla chief executive Elon Musk’s public political activity.

In China, Tesla’s share of the highly competitive electric vehicle market declined to 8 per cent last year from 10 per cent in 2024, despite achieving a record monthly sales figure of 93,843 units in December. In January, Tesla introduced a seven-year, low-interest financing scheme for buyers of the Model 3 and Model Y in China, prompting local competitors such as Li Auto, Xiaomi and Xpeng to roll out similar incentives.

Musk has said he expects regulatory approval for Tesla’s driver-supervised Full Self-Driving system in Europe and China as early as this month, as the company seeks to boost software revenue amid slower growth in vehicle sales. BYD, Tesla’s largest rival in China, reported a 30 per cent fall in global sales in January, partly due to changes in a government subsidy programme for vehicle trade-ins that affected lower-priced models