Tesla China EV sales rose 39.4% from a year earlier in May, extending growth for a seventh straight month, China Passenger Car Association data showed Tuesday.
Deliveries of China-made Model 3 and Model Y vehicles reached 85,982 units in May. The figure included exports from Tesla’s Shanghai plant to Europe and other markets, according to the CPCA data.
Sales also rose 8.2% from April, the data showed. The increase followed signs of a rebound in Tesla registrations across several European markets in May.
Tesla Inc. continues to face pressure from BYD Co. Ltd. and other Chinese rivals. BYD maintained strong shipments to Europe and other overseas markets.
Read: Tesla Model Y Prices Rise by Up to $1,000 in US
The competition has shifted from price cuts toward product features and technology. BYD recently pledged one year of compensation and repairs for accidents involving its City Navigation driver-assistance function.
Tesla still awaits Chinese regulatory approval for its most advanced driver-assistance features. That delay could weigh on its competitiveness as local rivals speed up smart-driving upgrades.
