Sales of Tesla vehicles increase significantly in China during the first quarter's close
In a surprising turn of events, Tesla's Q2 2025 sales performance in China has shown a notable decline, despite a strong Q1 and a surge in Model Y sales earlier in the year.
The automaker's revenue from China in Q2 2025 was $4.31 billion, contributing about 19% of Tesla’s total quarterly revenue. This is a drop from previous years' China shares, which ranged around 21-22.5% of total sales.
While Model Y sales had briefly surged in June 2025 with a 9.09% year-over-year increase, July saw a sharp decline of 15.24% year-over-year in Model Y retail sales to 30,766 units, and a 31.4% drop from June. This indicates that the momentum did not sustain through Q2 into Q3. Overall, Tesla’s retail sales in China declined year-over-year for five out of the first seven months of 2025.
New vehicle registrations in July and August showed weakness, with a 12% year-over-year decline in sales for July and a decline in insurance registrations (an industry proxy for deliveries) down by 26% in late August. However, there was some signs of recovery starting in Q3, with a 45% increase in Q3 registrations compared to Q2.
In summary, despite strong Q1 indications and a June surge for the Model Y, Tesla’s Q2 2025 in China experienced a sales decline both in delivery volume and revenue, reflecting intensifying local competition and market pressure.
As we move into Q2 2025, all eyes are on how Tesla will perform in this traditionally stronger quarter for the automaker. The launch of the six-seat Model Y L in China aims to boost future sales, but its impact was not reflected in Q2 results.
Looking back at Q1 2025, Tesla was performing strongly in China. The new Model Y was introduced to the Chinese market in January 2025, and deliveries began in February. The weekly insurance registration figures for Tesla China from March 9 to March 30 are as follows: 13,800, 15,300, 17,400, and 21,000. This figure of 21,000 new vehicle registrations in the final week of March is the highest weekly figure of Q1 2025, and is also the fourth highest week ever for the company in the Chinese market.
Tesla China recorded 137,200 registrations as of the end of March 2025, up about 1.8% year-over-year. This performance has surpassed its year-to-date (YTD) performance from Q1 2024.
However, it is important to note that Giga Shanghai temporarily shut down to accommodate the new design of the Model Y. Tesla China operated below full capacity during much of Q1 2025 due to the Model Y transition. As of now, Giga Shanghai is operating at full capacity.
If current trends hold, Tesla could be poised for another record-breaking year in China. The China team is expecting to end March with one of the strongest sales weeks of 2025 and one of the best in the company's history. The highest weekly record for Tesla in the Chinese market stands at 23,100 units, set in 2022.
The performance of Tesla in China during the week ending March 30, 2025, is notable compared to earlier this year. A referral link for three months of Full Self-Driving (FSD) was mentioned in a tweet accompanying the information, but it is not a standalone fact and is not included in the bullet points.
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