Key Points Sales of Tesla's China-made electric vehicles rose in the first two months of 2026 from the year before, while BYD's sales plunged over the same period. The combined January and February sales of Tesla's China-made EVs rose by more than 35% on year, according to data from the China Passenger Car Association. But there is little indication that the American automaker is set to catch up to the Chinese EV giant. In this article Tesla's China-made electric vehicle sales rose over the first two months of 2026 from the year before, regaining some lost ground to China's BYD. The combined January and February sales in Tesla's China-made EVs rose by more than 35% to 127,728, up from 93,926 in the previous year, according to data published Thursday by the China Passenger Car Association (CPCA). The figure was adjusted to account for the seasonal sales slowdown during the two-week Chinese New Year holiday, which took place mid-February. The combined sales volume from Tesla's Shanghai Gigafactory — which produces the Model 3 and Model Y for domestic and foreign markets in Europe, the Asia-Pacific and elsewhere — was second only to BYD, which reported a 36% decline in deliveries on year during the same period. BYD unseated Tesla as the world's largest EV seller, on a calendar-year basis, for the first time in 2025, but Tesla's recent delivery figures suggest that demand remains relatively healthy, as the combined sales volume for Tesla's China-made EVs is still more than double that of the next closest automaker, Leapmotor. Reuters also reported last week that new registrations for Tesla's EVs, a proxy for sales, rose broadly across Europe in February, most of which are exported from Tesla's Shanghai factory. Stiff competition Still, there is little indication that the American automaker is primed to catch up to BYD's sizeable lead in domestic and overseas sales. BYD's new Blade battery and charging capabilities — touted to be able to achieve a 97% charge from 10% in just nine minutes — was unveiled last week to critical acclaim, as it was said to overcome common concerns over EV battery ranges. BYD's growing overseas footprint also enables the Shenzhen-headquartered automaker to maintain a strong lead over its domestic competitors, with its export figures exceeding domestic sales for the first time in February. "BYD's hedge is exports — [the company's] overseas sales crossed 1 million units in 2025 for the first time, a buffer purely domestic rivals can't match," Leon Cheng, head of the mobility practice at management consulting firm YCP, told CNBC. Other automakers from China have also grown increasingly competitive by offering a wider spread of features at more affordable prices, chipping away at sales from both BYD and Tesla.