Tesla's China sales rebound in Feb as market share hits nearly 2-year high

• Tesla's retail sales in China surged in February amid broader market weakness, pushing its share in the BEV market to the highest since April 2024.
• The Model Y drove the sales recovery, with its retail sales in China surging 215.84% year-on-year to 25,286 units in February.

Tesla saw a significant rebound in its China retail sales in February amid a broader contraction in the world's largest electric vehicle market, pushing the company's market share to the highest level in nearly two years.

The US EV maker's retail sales in China stood at 38,206 vehicles last month, up 42.68% year-on-year and surging 106.69% from January, according to data released Thursday by the China Passenger Car Association (CPCA).

Tesla's share of China's battery electric vehicle (BEV) market jumped to 13.74% in February. Its share in the broader new energy vehicle (NEV) market rose to 8.23%. Both figures are the highest recorded since April 2024.

The performance stood in stark contrast to the overall Chinese auto market. China's retail sales of BEVs dropped 34.9% year-on-year to 278,000 units in February, while NEV sales dropped 32% to 464,000 units.

The Model Y SUV (sport utility vehicle) drove the sales recovery. It recorded a wholesale volume of 41,404 units, making it the best-selling passenger vehicle at wholesale for the month.

Tesla is facing intensifying pressure from domestic rivals. In January, the Model Y lost the title of China's best-selling EV to Xiaomi's SU7 sedan.

In February, sales of the Xiaomi YU7 SUV, Model Y's direct rival, stood at 20,196 units, down 46.67% from January.

Despite the domestic sales rebound, exports from Tesla's Shanghai factory slowed in February. The plant shipped 20,393 vehicles overseas last month. That was down 59.73% from January, when exports reached their second-highest level on record.

Including domestic retail sales and exports, Tesla China's total wholesale volume was 58,599 units in February. This represents a 90.95% increase from a year earlier, but is 15.23% lower than January.