Data released on Thursday by the China Passenger Car Association revealed that Tesla Motors (TSLA.US) sold 36% more China-made electric vehicles in April compared to the same period last year, marking the sixth straight month of growth. Deliveries of Model 3 and Model Y vehicles produced at Tesla's Shanghai plant, including exports to Europe and other markets, totaled 79,478 units. These figures suggest that after a period of significant market share loss, Tesla is stabilizing in two of its most important markets outside the United States. However, regulatory delays for its Full Self-Driving (FSD) software and the emergence of new electric vehicle models from Chinese brands may temper its recovery momentum.
Last month, Tesla saw continued sales improvement in several European markets, including Sweden, France, and Denmark. This rebound has been largely driven by soaring oil prices resulting from U.S.-Iran tensions, which have stimulated strong demand for pure electric vehicles.
Tesla is facing regulatory hurdles, with the approval pathway for its Full Self-Driving system—highly valued by customers, especially in China—remaining unclear. In April, Chief Financial Officer Vaibhav Taneja stated that the company now expects to receive full regulatory approval for FSD in China during the third quarter, a delay from the initial first-quarter target. Emails from some European regulators indicate that the European Union remains skeptical of the technology.
Prior to this recovery, Tesla endured a difficult period, having lost nearly half of its European market share by 2025. Despite these challenges, Tesla is intensifying efforts to counter competition from new Chinese models, including the development of a more affordable compact SUV to be manufactured in China.
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