Tesla Reports 91% Y/Y Sales Growth in China February

Tesla posted significant sales growth in China, with a 91% year-over-year increase in domestic electric vehicle sales for February. This growth highlights the company's efforts to expand its presence in the Chinese market.

Tesla's Shanghai Gigafactory delivered 58,600 units of Model 3 and Model Y vehicles in February, marking a 91% year-over-year surge in China-made EV sales . The strong performance sent TSLA shares up 4% in U.S. trading, as investors cheered the fourth consecutive month of rising China sales figures.

Context matters for the headline number: Tesla's February 2025 deliveries were depressed by a partial assembly line suspension for the refreshed Model Y during Lunar New Year, creating a low comparison base. Sequentially, February sales were down 15.2% from January, consistent with typical seasonal patterns. Exports from Shanghai soared roughly five-fold year-over-year to 20,000 vehicles, highlighting the factory's growing role as a global export hub for European and Asian markets.

The results come as competition intensifies in the world's largest EV market. Tesla's seven-year, low-interest financing plan has prompted rivals including [BYD] to match terms, while a scaling-back of government subsidies is squeezing margins across the sector. Investors should watch whether Tesla can sustain momentum as BYD and other domestic players ramp up new model launches through Q2.