By Reuters

Exterior view of the Tesla Gigafactory during a government-organised media trip in Shanghai, China, April 14, 2026. REUTERS/Go Nakamura/File Photo

(Reuters) - Tesla's (TSLA.O) China-made electric vehicle sales rose 37.8% in July from a year earlier, ​marking the ninth straight month of growth as the U.S. ‌automaker reports a mixed performance across its markets.

Sales of Model 3 and Model Y vehicles from its Shanghai plant, including exports to Europe ​and other markets, totalled 93,579 units last month, up ​5.0% from June, data from the China Passenger ⁠Car Association showed on Tuesday.

Tesla posted mixed July registration results across ​Europe even with the broader continental EV market staging a ​rebound, with strong gains in France and Denmark outweighed by sharp declines in Norway and Sweden. 

Competition from Chinese EV makers continues to mount, ​with BYD (002594.SZ), Tesla's biggest rival, posting higher global sales ​for a third straight month in July, helped by robust exports, particularly ‌to ⁠Europe.

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While CEO Elon Musk dismissed as "fake news" a report that the company was weighing a spin-off or sale of its China business ahead of a potential merger with firm SpaceX (SPCX.O), ​the speculation underscores ​investor concerns ⁠over Tesla's exposure to the country, where about 95% of its components are sourced locally.

Steve ​Greenfield, founder of U.S.-based automotive venture capital firm ​Automotive ⁠Ventures, warned that even speculation about a China separation could start hurting Tesla.

"Now the genie is out of the bottle...No matter ⁠how ​this plays out, there'll be a ​negative effect on Tesla's sales in China.," he said.

Reporting by Qiaoyi Li, Zhang ​Yan, Shi Bu and Ju-min Park; Editing by Kirsten Donovan 

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