BEIJING - Tesla's sales of electric vehicles manufactured in China have increased for the second consecutive quarter, remaining robust despite fierce competition as the American automaker expands its focus beyond just electric vehicles.

According to data from the China Passenger Car Association released on Thursday (April 2), sales of the Model 3 and Model Y produced at Tesla's Shanghai factory, including exports to Europe and other regions, rose by 8.7 percent year-on-year to reach 85,670 vehicles in March.

This marks the fifth consecutive month of rising sales, driven by a recovery in European demand. Analysts believe that Tesla and other electric vehicle manufacturers may also benefit from increased oil prices due to the crisis in Iran.

For the first quarter of the year, from January to March, sales surged by 23.5 percent compared to the previous year, a significant increase from the 1.9 percent rise noted in the fourth quarter.

Tesla's global deliveries in the first quarter are projected to rebound by nearly 10 percent compared to a decline the previous year, which was influenced by consumer backlash against CEO Elon Musk's political opinions.

Despite the intense competition, particularly from Chinese rivals, Tesla lost almost half of its European market share last year, and its share of the Chinese electric vehicle market dropped from 10 percent to eight percent in 2024.

BYD, Tesla's largest competitor in China, continues to put pressure on the American electric vehicle manufacturer in Europe, although significant growth overseas has not been enough to compensate for BYD's difficulties in its domestic market.

In addition to its electric vehicle pursuits, Tesla is exploring solar energy, humanoid robots, and autonomous robotaxis as future growth avenues. The company is reportedly in discussions with Chinese firms to procure solar equipment worth US$2.9 billion (S$3.7 billion), as reported by Reuters last month.

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