Tesla’s China comeback: Sales double as buyers rush to avoid 5% EV tax

Despite sluggish global demand, Tesla is seeing renewed momentum in China, its most crucial overseas market.

According to EV industry data, Tesla’s vehicle registrations in China more than doubled in the second week of October, reaching 11,300 units. This is a sharp increase compared to the previous week, defying the typical early-quarter dip in sales.

The surge follows a steady climb since mid-August, with Tesla now outperforming local rivals such as Leapmotor and Aito in weekly sales. Analysts attribute this rise to Chinese buyers seeking to avoid a new 5% electric vehicle purchase tax, which comes into effect in 2026.

Tesla’s vice president for China, Grace Tao, confirmed that the company has launched an “intensive production ramp-up” at its Shanghai Gigafactory, aiming to deliver vehicles “as soon as possible.” The Shanghai plant, which serves as Tesla’s global export hub, remains a cornerstone of the company’s international strategy.

The renewed momentum offers hope for Tesla amid global uncertainty. The EV maker has faced fluctuating sales in the U.S. and Europe due to rising competition and economic pressures. But in China, Tesla’s competitive pricing and full tax exemptions on base models continue to attract cost-conscious buyers.

Industry analysts say China remains “critical” to Tesla’s long-term success, both as a domestic sales leader and a manufacturing powerhouse. As one market analyst told Yahoo Finance, “Tesla’s resilience in China demonstrates its ability to adapt in one of the most competitive EV markets on the planet.”

For consumers, the surge is a sign of confidence in electric mobility. With lower prices, faster deliveries, and tax incentives still in place, more Chinese drivers are making the switch from petrol to electric, a move that benefits their wallets and the environment alike.

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