Tesla China deliveries climb despite regulatory, competition pressures

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 sales recovery extended into several European markets last month, including Sweden, France and Denmark.

The rebound was supported by stronger demand for battery electric vehicles as oil prices rose amid the ongoing US-Iran conflict.

The improvement comes after Tesla endured a difficult period in Europe, where the company lost nearly half of its market share during 2025.

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.

In Europe, Tesla is also facing scepticism from regulators regarding the technology.

Tesla prepares cheaper SUV to counter Chinese rivals

As competition intensifies, Tesla is increasing efforts to strengthen its position in China and other markets.

Last month the company is developing a cheaper compact SUV that will be produced in China.

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.

The company’s latest sales figures suggest that demand for Tesla vehicles remains resilient despite the increasingly competitive environment.

However, regulatory uncertainty surrounding FSD approval and the rapid rise of Chinese rivals are likely to remain key challenges for the automaker in the coming months.