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BEIJING, June 2 (Reuters) - Tesla's TSLA.O Chinese-made electric vehicle sales jumped 39.4% from a year earlier in May, marking a seventh consecutive month of growth as it held its ground against Chinese rivals.

Deliveries of Tesla's Model 3 and Model Y vehicles from its Shanghai plant, including units exported to Europe and other markets, hit 85,982, up 8.2% from April, data from the China Passenger Car Association showed on Tuesday.

The U.S. automaker saw new registrations rebound across several European markets in May, extending a recovery after earlier demand weakness in the continent.

Meanwhile, BYD 002594.SZ, 1211.HK maintained strong shipments to Europe and other markets, helping Tesla's biggest Chinese competitor end a losing streak of eight months globally and highlighting growing pressure on foreign automakers.

Echoing a broader shift from price wars toward product differentiation and technology, BYD has doubled down on sharpening its technological edge, including a pledge last week to fully cover compensation and repairs for a year of accidents involving its City Navigation driver-assistance function.

Tesla, by contrast, is still awaiting regulatory approval in China to roll out its most advanced driver-assistance features, a delay that could weigh on its competitiveness as local rivals accelerate upgrades of smart driving capabilities.