Rising! Tesla, Inc. (TSLA.US) sales in China have increased for three consecutive months, with nearly 70,000 vehicles delivered in January, a 9% year-on-year increase.

Although the overall Chinese electric vehicle market experienced a chill at the beginning of 2026, Tesla, Inc. (TSLA.US) bucked the trend by achieving sales growth for the third consecutive month, with a 9% year-on-year increase in sales in China in January. According to preliminary data released by the China Passenger Car Association on Wednesday, the car manufacturer, led by Elon Musk, delivered 69,129 vehicles from its Shanghai factory in January. Despite the 5% vehicle purchase tax on new energy vehicles and plug-in hybrid vehicles in China this year, and a substantial reduction in subsidies for entry-level models, Tesla, Inc. continues to attract consumers with seven-year low-interest car loans, a $8,000 (approximately $1,153) car insurance subsidy, and other promotional policies. The China Passenger Car Association stated that the overall wholesale sales of new energy vehicles (including pure electric and plug-in hybrids) in China in January remained basically stable, with a slight 1% increase to 900,000 vehicles. The organization did not disclose export data separately. The previously rapidly growing new energy vehicle startups in China also saw a decline in sales. XPeng, Inc. ADR Sponsored Class A (XPEV.US) saw a sharp 34% drop in deliveries in January; while Li Auto, Inc. Sponsored ADR Class A (LI.US), which is considered the most resilient among the new energy vehicles due to its focus on extended-range hybrid models, also saw an 8% decline in deliveries. However, it is worth noting that the first and second months of the year are traditionally slow sales seasons in the automotive market due to the Chinese New Year holiday. The current industry weakness indicates that the Chinese automotive market has entered a mature development stage. Tesla, Inc. is banking on its fully autonomous driving assistance system (which currently still requires full driver supervision) to gain approval for deployment in the domestic market in order to maintain its premium brand positioning. Domestic competitors are also intensifying their efforts to develop similar smart driving technologies and continue to focus on the hybrid vehicle market. For companies like BYD Company Limited (01211) and GEELY AUTO (00175), the changes in the domestic market are accelerating their global expansion. Overseas deliveries are a bright spot for BYD Company Limited, with a year-on-year increase of over 50%, and overseas sales accounting for nearly half of its total sales.