Tesla Inc.’s China shipments in January increased 9% from a year earlier, bucking the rocky start that many local electric vehicle makers had in 2026, including top rival BYD Co., which saw sales slip by almost a third.

BEIJING, Feb 4 (Reuters) - Tesla's China-made electric vehicle sales rose for a third-straight month in January, even as China's EV sales and exports were slow amid weak domestic demand. Deliveries of Model 3 and Model Y vehicles made at Tesla's Shanghai plant,

Tesla entered 2026 in China at a time when the electric vehicle market was clearly under pressure. Sales slowed across the industry, government incentives weakened, and buyers became more cautious with their spending.

According to the latest industry data, BYD sold approximately 2.26 million battery-electric vehicles (BEVs) in 2025, surpassing Tesla’s deliveries of 1.63 million EVs over the same period. This marks the first time BYD has finished a full year ahead of Tesla in global BEV sales, beating its U.S. rival by more than 600,000 units.

An update to the SU7 has lifted its driving range up to 902 km and could further boost demand

The new regulations are specific. Officials announce outright ban on vehicle design popularized by Tesla: 'May ultimately … influence global norms' first appeared on The Cool Down.

Xiaomi and Nio had the strongest showings. The upcoming Lunar New Year holiday will hit February sales.

The strong-selling and well-reviewed SU7 is a popular model in China, selling more units there than the Tesla Model 3, with Xiaomi struggling to meet demand. Its latest offering, the YU7, reportedly amassed over 100,000 preorders since orders opened up in early January.