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Tesla Sales Rise: China Market Defies Slowdown
4 Feb
Summary
- Tesla's January sales climbed for the third consecutive month.
- Overall China EV market faces slowing growth in early 2026.
- BYD reported a significant 30% drop in global sales for January.
In January 2026, Tesla's deliveries of its China-made Model 3 and Model Y vehicles saw a 9.3% year-over-year increase, marking the third consecutive month of gains. This rise occurred even as the wider Chinese electric vehicle market experienced a slowdown, with overall sales and exports estimated to grow by only 1% in January. This contrasts sharply with the 25% combined growth seen in 2025.
The sluggish domestic demand was partly attributed to consumers front-loading purchases at the end of the previous year. However, exports helped to offset weaker internal sales. Tesla's main competitor, BYD, reported a substantial 30% decrease in global sales for January. Several other automakers, including Geely and Seres, managed to achieve record sales and exports during the month.
In response to stagnant demand across the sector, numerous car brands, including Xiaomi and Xpeng, have introduced extended financing plans. This move follows Tesla's own seven-year financing offer in China. Tesla is also anticipating potential approval for its Full Self-Driving system in Europe and China as early as February 2026, aiming to boost software revenue amidst a cooling EV business.
