Tesla Motors (TSLA.US) reported a 10% year-on-year increase in November sales from its Shanghai Gigafactory, delivering 86,700 vehicles, according to preliminary data from China’s Passenger Car Association. This marks only the third monthly sales growth in China this year for Elon Musk’s automaker, which has faced declining global demand.

The November figure represents Tesla’s second-highest monthly wholesale volume in 2023, trailing only September’s performance. The rebound offers a rare bright spot for Tesla in China as it grapples with restricted U.S. federal EV subsidies and an anticipated second consecutive annual drop in worldwide deliveries.

While the preliminary data did not break down exports versus domestic sales, the Shanghai plant primarily supplies the local market. With an annual production capacity of up to 950,000 EVs—accounting for roughly 40% of Tesla’s total output—the facility remains pivotal to the company’s operations.

China’s broader new energy vehicle (NEV) sector, including plug-in hybrids and pure EVs, saw a 20% year-on-year sales increase in November.

Meanwhile, Tesla’s European sales presented a stark contrast. November registrations plummeted 58% in France (to just under 1,600 units), 49% in Denmark, and 59% in Sweden—extending a prolonged slump. Norway emerged as an outlier, with Tesla registrations surging 175% as buyers rushed to secure EVs ahead of potential tax policy changes, propelling the brand to a record annual sales milestone with a month remaining in the year.