Tesla’s China Sales Get A January Boost Amid Tepid Market Growth – TSLA Stock Edges Lower Pre-Market

Tesla recorded a 9.3% increase in wholesale sales in January, according to a report by CNEVPost.

• Industrywide, China’s passenger new energy vehicle wholesale volume is estimated at about 900,000 units in January, up 1%, according to the report.
• Sequentially, Tesla’s China deliveries fell by around 29%.
• Rival BYD reported a sharp 30% y-o-y decline in January sales in China.

Tesla’s China-made electric vehicle sales climbed in January, outpacing the country’s broader EV market and offering a rare bright spot for the automaker as it navigates intensifying competition and demand pressures in the U.S. and Europe.

Tesla recorded wholesale sales of 69,129 units in the month, a 9.3% increase from 63,238 units a year earlier, according to a report by CNEVPost on Wednesday, citing data from the China Passenger Car Association (CPCA). However, deliveries fell by around 29% sequentially.

Modest Chinese EV Sales Growth

Industrywide, China’s passenger new energy vehicle (NEV) wholesale volume is estimated at about 900,000 units in January, up just 1% from a year ago but down 42% from December. Policy changes have added complexity for automakers, including a new 5% purchase tax and reduced trade-in subsidies, which have dampened consumer interest in buying.

Tesla moved quickly to stimulate sales, launching a seven-year low-interest financing plan for locally produced vehicles and later reintroducing insurance subsidies for the Model 3. Several domestic rivals, including Li Auto, Xpeng, Xiaomi, and Nio, soon adopted similar incentives.

Meanwhile, rival BYD reported a sharp 30% decline in January sales.

Tesla Facing Headwinds In Europe And U.S.

Tesla has been grappling with mounting headwinds in both Europe and the U.S. In France, January registrations plunged 42% to 661 vehicles, while Norway, historically a strong market, saw an even sharper 88% drop to just 83 units. Tesla’s European registrations had already fallen 20% year over year in December, despite the broader BEV market surging 50%.

In the U.S., Tesla reportedly sold an estimated 40,100 vehicles in January, down 17% from a year earlier and marking the fourth straight month of annual declines. The broader EV market has softened since the Trump administration ended the $7,500 federal tax credit last year.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits remained ‘extremely bearish’ over the past 24 hours. TSLA shares were down 0.3% in pre-market trading on Wednesday.

TSLA stock has shed nearly 8% so far this year.

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