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Tesla China posts 36% sales rise, as local rivals’ new models nip at heels

April sales rose on a year-on-year basis but dropped from the previous month, indicating fiercer competition from domestic brands

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Daniel Renin ShanghaiPublished: 2:34pm, 8 May 2026Updated: 9:32pm, 8 May 2026Tesla’s Shanghai factory reported a big year-on-year rise in deliveries last month as it benefited from local governments’ subsidies and increasing interest in electric vehicles (EVs) amid the global energy shock.

The US carmaker said in a statement that the so-called Gigafactory delivered 74,478 units in April, up 36 per cent from the same period in 2025. The number comprises sales in mainland China and exports to overseas markets.

However, on a month-to-month basis the factory’s sales in April dropped 7.2 per cent – a fresh sign that competition on the mainland is getting fiercer after domestic rivals launched dozens of new models.

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“Tesla is still a strong contender in China’s EV sector, and monthly sales of more than 70,000 units is impressive,” said Eric Han, a senior manager at Shanghai consultancy Suolei. “But it may face difficulties in sustaining its growth momentum in the coming months when brand new models developed by Chinese carmakers attract more Chinese buyers.”

In the first four months of 2026, Tesla’s Shanghai factory reported total sales of 292,876 vehicles, up 26.7 per cent year on year.

AdvertisementEV sales on the mainland got off to a bumpy start in the first two months of the year amid a gradual rollback of purchase subsidies and tax incentives implemented by the central government.

Deliveries rebounded in March as local government subsidies and aggressive financing incentives drew in first-time buyers.

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