Tesla's China-Made Vehicle Sales Surge in May

Tesla, which operates a mega-factory in Shanghai, posted a 39 percent jump in China-made vehicle sales in May, marking its seventh consecutive month of growth. The auto giant delivered a total of 85,982 Model 3 and Model Y vehicles from its Shanghai plant, including for exports, according to the China Passenger Car Association.

The export gains came as registrations of new Teslas rebounded across several European markets. Some consumers actively sought an alternative to gasoline-powered cars amid higher oil prices triggered by the Iran war. The robust May figures highlight Tesla's resilient 2026 performance in the highly competitive Chinese electric vehicle sector.

Following an intense domestic price war earlier this year, Tesla's operations in China have maintained momentum, pushing cumulative deliveries from the Shanghai Gigafactory to nearly 380,000 units over the first five months of 2026.

Tesla's domestic sales have also been buoyed by the popularity of its extended-wheelbase Model Y L, alongside the anticipated public launch of its supervised Full Self-Driving system, which has been locally rebranded as "Tesla Assisted Driving."

Separately, domestic competitors continue to capture significant ground. Leapmotor in May retained its crown as the best-selling new Chinese energy vehicle startup after setting a new sales record for the second consecutive month. The Hangzhou-based company sold 81,569 new energy vehicles last month, up 81 percent from a year earlier. Among other automakers classed as startups, Nio ranked second with 37,705 vehicles sold.