Tesla’s China-made car sales surged 29% in May after an April drop (TSLA)

  • Tesla’s sales of China-made vehicles grew 29% from April to May. 
  • It sold 33,463 vehicles in May, including exports and locally sold cars. 
  • China is one of Tesla’s largest and most critical markets. 
  • See more stories on Insider’s business page.

Tesla sold 33,463 China-made electric cars in May, including exports, a 29% jump from April, according to data from the China Passenger Car Association (CPCA) on Tuesday.

China’s overall passenger vehicle sales jumped 1.1% to 1.66 million cars in May from a year earlier, CPCA said.

Tesla’s China sales — accounting for nearly a third of its total sales — is closely watched as a sign of the US company’s health in its second biggest market, where the company has invested heavily and often changed its own marketing playbook to attract customers.

Tesla makes its Model 3 sedans and Model Y sport-utility vehicles in Shanghai. In April, it sold 25,845 China-made cars, down from 35,478 in March.

Read more: The Tesla of scooters cracked one of the major hurdles facing EVs: battery swapping and leasing

Tesla faces stiff competition in China from a handful of electric-vehicle startups along with Wuling, a GM-backed car company behind the Hong Guang Mini EV, currently the country’s best-selling EV. The $4,500 EV isn’t exactly a direct rival to Tesla’s luxury vehicles, however. 

The monthly sales jump also comes following a tumultuous several months for Tesla in the Chinese market. In recent months, the Chinese government reportedly banned Teslas from government compounds, and the company faced an uproar over quality-control issues. 

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