Tesla Inc.‘s (NASDAQ:TSLA) retail sales in the Chinese market fell over 16% year-on-year in the first quarter of 2026 despite an increase in its Wholsale figures.

Tesla Retail Sales Fall

On Thursday, Electrek reported that the EV giant also recorded a 24.3% drop in its retail sales in March, with 56,107 units sold compared to 74,127 vehicles it sold last year. During the first quarter, Tesla sold 112,798 units in China, down 16.2% compared to the 134,607 units it sold during the same period last year.

Tesla’s wholesale figures from China’s Gigafactory Shanghai came in at 213,398 units, with over 100,000 vehicles exported to various markets worldwide. In March, Tesla exported 29,563 vehicles overseas, a 529% increase from the 4,701 units it exported during the same period last year, the report said.

Tesla’s First Quarter Deliveries, New Model Buzz

Tesla delivered over 358,000 units during the first quarter of 2026, which missed market expectations. The automaker produced close to 408,000 units during the same period.

However, the gap between units sold and units produced illustrated a surplus of more than 50,000 Tesla vehicles sitting unsold in the company’s lots, which is a new record that exceeded Q1 2024’s figure of 46,500 units.

Tesla is also developing a possible affordable vehicle in its lineup, which, according to investor Ross Gerber, could just be a Cybercab with a steering wheel and pedals.

According to Benzinga Edge Rankings, Tesla offers satisfactory Growth, but fails to provide a favorable price trend in the short, medium, and long term.

Price Action: TSLA surged 0.49% to $344.94 during the Pre-market trading session on Friday.

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