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Tesla (TSLA) was in a rough patch in China over the past year, as deliveries softened amid fierce local competition and shifting incentives. Tesla’s mainland retail sales slipped about 5% in 2025 versus 2024, reversing the prior year’s roughly 9% rise that had briefly masked mounting pressure.
That weakness has now begun to look like a turning point after the latest data showed that China-made deliveries from Tesla’s Shanghai Gigafactory nearly doubled in February, jumping 91% year-over-year (YOY) to about 58,600 units, including exports. The surge, helped by an easy comparison to a year-ago production pause for a refreshed Model Y and stronger export flows, signals renewed momentum in the world’s largest electric vehicle (EV) market.