Tesla Inc. reported a rebound in China shipments for February, recovering from a low base a year earlier. The electric-vehicle maker navigated seasonal challenges including a nine-day Lunar New Year lull and the gradual phase out of government subsidies. This performance bucked the broader industry trend in the world's largest EV market.

China's automotive sector typically sees reduced sales during the Lunar New Year holiday as factories shut down and consumers delay purchases. Tesla faced additional headwinds from Beijing's decision to phase out EV subsidies, which has pressured sales across the industry. The company's ability to gain ground during this period signals resilience in its Chinese operations.

The February rebound comes as Tesla works to maintain momentum in China, where competition has intensified from domestic brands like BYD. The company's performance during traditionally weak periods could indicate improving market share and stronger consumer demand for its vehicles despite the subsidy reductions.