TSLA reported a 36% year-on-year increase in China-made electric vehicle sales in April, marking the sixth consecutive month of gains as the US automaker continued efforts to defend its market position against intensifying competition from lower-priced Chinese rivals.
Deliveries of Model 3 and Model Y vehicles produced at Tesla’s Shanghai plant totaled 79,478 units in April, according to data released by the China Passenger Car Association on Thursday.
The figures include vehicles exported to Europe and other overseas markets.
While April sales declined 7.2% from March levels, the performance remained significantly above the figures recorded during the same month last year.
The latest numbers indicate Tesla may be stabilising in some of its key international markets outside the United States after facing a prolonged period of market share pressure.
However, ongoing regulatory delays related to the company’s Full Self-Driving (FSD) technology, alongside mounting competition from Chinese electric vehicle makers, could continue to weigh on its recovery efforts.
European sales show signs of improvement
Tesla’s performance across Europe remained mixed in April despite improvements in several countries.
Registrations increased 111% in Sweden and 102% in Denmark, citing data from Mobility Sweden and bilstatistik.dk.
France recorded a 112% rise in registrations, while the Netherlands posted a 23% increase.
However, several other European markets reported declines.
Registrations dropped 61% in Norway, 47% in Spain, 33% in Portugal and 5% in Italy.
Despite signs of recovery, Tesla continues to face pressure from both established automakers and emerging Chinese EV manufacturers offering more affordable alternatives.
FSD approval delays remain a key challenge
Regulatory hurdles continue to remain a major concern for Tesla, particularly regarding approval for its Full Self-Driving system in China.
The software is considered highly valuable among customers in the region, but the approval process remains uncertain.
Tesla Chief Financial Officer Vaibhav Taneja said in April that the company now expects to secure full approval for FSD in China by the third quarter.
The revised timeline marked a delay from Tesla’s earlier target of obtaining approval during the first quarter.
As competition intensifies, Tesla is increasing efforts to strengthen its position in China and other markets.
The move is seen as part of Tesla’s broader strategy to compete more aggressively against domestic Chinese EV makers that continue to gain market share through lower-priced offerings and expanding model line-ups.
Stock performance remains under pressure
Meanwhile, Tesla’s stock has continued to face pressure this year, falling around 14% year-to-date and declining more than 2% after the company released its March-quarter results.
Investor attention has increasingly moved away from Tesla’s short-term vehicle sales performance, with markets now focusing more closely on the company’s artificial intelligence ambitions and future technology-driven growth initiatives.
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