Tesla China Sales Jump in February 2026 as Model Y surges

Tesla’s retail sales in China rose sharply in February, defying a broader electric vehicle market slowdown and pushing its battery electric vehicle market share to the highest level since April 2024.

Tesla sold 38,206 vehicles in China in February, according to data released Thursday by the China Passenger Car Association. That figure increased 42.68% from a year earlier and jumped 106.69% from January’s 18,485 units.

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The surge came despite weakness across the broader Chinese electric vehicle market. Retail sales of battery electric vehicles in China fell 34.9% year-on-year to 278,000 units in February. Sales of new energy vehicles, which include hybrids and pure electric models, declined 32% to 464,000 units.

Tesla’s share of China’s battery electric vehicle market climbed to 13.74% in February. Its share in the wider new energy vehicle market rose to 8.23%. Both figures marked the highest level recorded since April 2024.

The Model Y sport utility vehicle played a key role in the company’s sales rebound. China-made Model Y units recorded a wholesale volume of 41,404 vehicles in February, making it the best-selling passenger vehicle at wholesale during the month.

Tesla’s retail sales performance showed a sharp turnaround from January. The company sold 18,485 vehicles in China during the first month of 2026, significantly lower than the 33,703 units reported in January 2025 and 39,881 units in January 2024.

February’s sales rebound lifted Tesla closer to levels seen in previous years. The company sold 26,777 vehicles in February 2025 and 30,141 units in February 2024, according to CPCA data.

Including both domestic sales and exports, Tesla’s total wholesale deliveries from China reached 58,599 units in February. That represented a 90.95% increase from a year earlier but remained 15.23% lower than January’s 69,129 vehicles.

Exports from Tesla’s Shanghai factory declined during the month. The plant shipped 20,393 vehicles overseas in February, down 59.73% from January when exports reached 50,644 units, the second-highest monthly level on record.

Tesla’s China operations remain central to the company’s global production strategy. The Shanghai facility serves both the domestic market and export destinations across Asia and Europe.

Despite February’s rebound, Tesla faces growing competition from Chinese electric vehicle manufacturers. Domestic rivals have rapidly expanded their model lineup and market share in recent years.

In January, Tesla’s Model Y lost the title of China’s best-selling electric vehicle to Xiaomi’s SU7 sedan. The development highlighted intensifying competition from local technology and automotive firms entering the EV market.

Another emerging rival is Xiaomi’s YU7 SUV, positioned as a direct competitor to the Model Y. Sales of the YU7 reached 20,196 units in February, though that figure was down 46.67% from January.

Tesla’s China market share has fluctuated significantly over the past two years. The company’s share of the battery electric vehicle market stood at 10.61% in January 2024 and 13.64% in February 2024 before dropping through much of 2025.

In early 2026, Tesla’s share fell to 5.31% in January before rebounding strongly to 13.74% in February as sales accelerated.

The company’s share of the broader new energy vehicle market also showed a similar pattern. Tesla accounted for 5.97% of China’s NEV market in January 2024 and 7.77% in February 2024. The share declined through 2025 before recovering to 8.23% in February 2026.

China remains the world’s largest market for electric vehicles and a key battleground for global automakers and local technology firms. Tesla’s performance in the market is closely watched as an indicator of competitive dynamics in the global EV industry.

The February rebound suggests Tesla remains capable of regaining momentum in China even as domestic brands expand rapidly. Continued demand for the Model Y could help stabilize Tesla’s position in the world’s largest electric vehicle market in the coming months.