Tesla Shanghai shipments rise, face stronger Chinese competition

Tesla’s Shanghai plant shipped 79,478 vehicles in April, including cars sold in China and vehicles exported from the factory, according to the China Passenger Car Association. The April total was up 36% from April 2025 but down 7.2% from March. Shanghai operations delivered 292,876 vehicles in the first four months of 2026, a 26.7% increase from the same period in 2025.

The month-on-month decline in April followed a wave of new model launches by Chinese automakers, which added options in the domestic market.

Eric Han, a senior manager at Shanghai consultancy Suolei, commented, “Monthly shipments above 70,000 are significant. Tesla may find it harder to sustain rapid growth going forward as Chinese buyers show growing interest in domestic brands.”

Electric-vehicle sales across China were weak in January and February after the central government scaled back purchase subsidies and tax breaks. Sales picked up in March when some local governments offered their own subsidies and automakers introduced financing packages to boost demand.

Tesla has increased exports from Shanghai. The company introduced a China-built Model 3 in Canada with an entry-level price of C$39,490. Under a tariff agreement between Canada and China, duties on Chinese-made electric cars dropped from 106.1% to 6.1% for up to 49,000 vehicles a year; for the first year the total was split into two six-month windows allowing 24,500 imports each. Global Affairs Canada confirmed import permit applications opened on March 1 but said no permits had been used as of the latest update. The first six-month window ends August 31, and the remaining allocation for the initial year will be handled through February 2027. Canadian officials are discussing whether to limit how many vehicles each automaker can import under the deal. In response to the tariff arrangement, Tesla removed Model 3 inventory from Canadian showrooms, returned demo vehicles to the United States and temporarily took its online ordering system offline to prevent purchases of U.S.-made models.

Established automakers are pursuing partnerships with Chinese EV makers. Stellantis acquired about a 21% stake in Leapmotor in 2023 and plans to expand a joint operation to sell and manufacture Leapmotor vehicles outside China. Discussions in Spain include adding a production line at Stellantis’ Zaragoza plant for an Opel electric SUV and for Leapmotor’s B10 model; the B10 may begin production this year while the Opel SUV is targeted for 2028. A Stellantis facility in Villaverde, Madrid, could start building a Leapmotor model in 2028.

Recent developments include Shanghai production and exports, changes to central and local subsidy policies, new model launches by domestic automakers and a tariff arrangement with Canada affecting the supply and sale of China-made electric vehicles.