Tesla's China-Made EV Sales Rise 5% in September as European Demand Recovers

Tesla (NASDAQ:TSLA) recorded a 5% year-on-year increase in sales of China-made electric vehicles in September, accelerating from August’s 3.6% growth as demand in European markets continued to recover.

Deliveries of Model 3 and Model Y vehicles manufactured at Tesla’s Shanghai factory reached 95,366 units during the month, compared with 90,812 a year earlier, according to data released on Friday by the China Passenger Car Association (CPCA).

The figures include vehicles sold domestically in China as well as exports to Europe, Asia-Pacific markets and Canada.

September marked the eleventh consecutive month of annual growth in sales of Tesla vehicles produced in Shanghai, reflecting continued demand for the company’s two main models despite competition in the global electric vehicle market.

The latest figures also showed an improvement from August, when sales of China-made vehicles increased 3.6% from the previous year.

Tesla’s performance in September coincided with a recovery in several European markets, where registrations of the company’s vehicles increased during the month.

The improvement extended a recent rebound in European sales following a period of weaker demand.

Tesla’s Shanghai manufacturing facility plays an important role in supplying international markets, particularly through exports of the Model 3 and Model Y.

For the third quarter, sales of Shanghai-built Tesla vehicles increased 13.7% compared with the corresponding period last year, according to Reuters calculations based on CPCA data.

The growth in China-made vehicle sales contrasted with Tesla’s global delivery performance, which showed a 2.1% year-on-year decline during the quarter.

However, the comparison was affected by the record delivery volumes reported in the third quarter of 2025.

Despite the annual decline, Tesla’s worldwide deliveries exceeded analysts’ expectations, supporting the possibility that the company could return to full-year delivery growth following two consecutive years of decreases.

In China, Tesla continues to use promotional incentives to support demand in an increasingly competitive electric vehicle market.

The company is offering discounts of 7,000 yuan, equivalent to approximately $1,044, on final payments for selected Model Y variants through the end of October.

Customers purchasing any Model 3 variant are also eligible for a 5,000 yuan discount during the same period.

The incentives come as domestic and international manufacturers compete for customers in China, the world’s largest automotive market.

Pricing remains an important factor in purchasing decisions, particularly as manufacturers introduce new electric vehicle models and compete on technology, range and affordability.

The discounts may help Tesla maintain sales momentum, although promotional measures can also affect average selling prices and vehicle profitability.

The latest CPCA figures suggest that Tesla’s Shanghai operations continued to expand their sales volumes in September, supported by both domestic demand and overseas shipments.

However, the difference between the growth in Shanghai-built vehicle sales and the decline in worldwide deliveries highlights the varied performance of Tesla’s regional markets.

Investors will be monitoring whether the recovery in European registrations continues and whether incentives in China support sustained demand through the final quarter of the year.

Tesla’s ability to maintain delivery growth while managing pricing pressure and competition will remain an important consideration for its performance in the remainder of 2026.

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