Key facts
- Tesla delivered 85,982 vehicles from its Shanghai plant in May.
- May deliveries represent a 39.4% year-over-year increase.
- May deliveries were up 8.2% compared to April.
- This is the seventh consecutive month of sales growth for Tesla in China.
- Tesla shares recovered in trading after strong China sales data.
- Tesla's global vehicle registrations saw significant increases in several European markets.
Tesla shares recovered in trading on Tuesday after a prior-session decline, driven by strong sales data from China. The company's EV sales in the region surged to 85,982 units in May, a 39.4% year-over-year increase and the seventh consecutive month of growth. This performance reinforces China's importance as a demand engine for Tesla, despite intense competition from domestic manufacturers like BYD. Tesla also saw improved momentum in several European markets, with significant registration jumps in France and Norway, though Italy showed a decline. Market watchers note that these figures often precede official sales reports, and Tesla's overall market share continues to face erosion due to lower-priced alternatives. Investor sentiment is also influenced by Tesla's long-term bets on autonomous driving, robotaxis, and humanoid robotics, with the company increasing its 2026 capital expenditure plan to over $25 billion for AI infrastructure, robotics, and chip development.