Tesla's China sales tripled from April to May as the world's largest auto market staged a surprise turnaround

• Tesla saw a large increase in China sales in May over April, a trade group said Monday.
• The uptick comes as China, the world's largest car market, also rebounded from months of declines.
• Shares of Tesla surged Monday after the news.

U.S. electric vehicle maker Tesla sold 11,095 Shanghai-made Model 3 vehicles in China in May, more than triple the volume seen in April, according to the China Passenger Car Association (CPCA).

Tesla sold 3,635 vehicles in April, down from around 10,160 units in March, CPCA data showed. CPCA uses a different counting method than Tesla's deliveries.

Tesla did not immediately respond to a request for comment.

The jump comes as China, the world's largest automotive market, posted its first month-over-month sales gain in almost a year. Sales of cars, SUVs and other vehicles jumped hit 1.64 million in May, a 1.9% uptick from a year earlier and the first increase since Jun 2019, the CPCA said.

Tesla's stock price jumped as much as 5.4% to a new all-time high in trading Monday following the data's release.

"Strong Model 3 demand out of China remains a ray of light for Tesla in a dark global macro and appears to be on a run rate to hit 100k unit deliveries in the first year out of the gates for Giga 3 which is driving some strength for Tesla as well as Model Y deliveries starting to ramp as well," Dan Ives, an analyst at Wedbush, said in a note to clients.

(Reporting by Yilei Sun and Brenda Goh; Editing by Jan Harvey)