Tesla Manufactures and Delivers 61,662 Electric Vehicles from the Shanghai Factory in May, Representing a 15% Decrease Year-Over-Year
In the world of electric vehicles (EV), Tesla, the global leader, has been experiencing a mixed year in 2025. Despite the Model Y remaining the world's best-selling EV, the company's sales have seen a decline in various regions.
Tesla's struggles are not confined to one continent. In May, the company faced its second-worst month in the past two years, with only February 2024 having lower sales. The company sold 61,662 Model 3 and Model Y units globally, marking a 14% year-on-year (YoY) decline.
Across Europe, Tesla's sales and market share have taken a hit due to political controversy surrounding CEO Elon Musk. This is evident in countries like France and Germany, where Tesla registrations dropped by 63.4% and 59.5% respectively in early 2025.
In China, Tesla's sales have also witnessed a downturn. The company's China-made EV sales dropped by 15% YoY in May. This trend continued in July, with a further 8.4% decline in sales of EVs made in China.
Even in the United States, the Model Y and Model 3 dominated EV sales, but their numbers have decreased. In Q2 2025, Model Y sales dropped from 101,000 to 86,000, a 14.8% decrease compared to Q2 2024.
The situation in Canada is also challenging for Tesla. The company's exclusion from the Canadian rebate program, which was in effect before the price increases that made them ineligible, has contributed to the decline in sales. Moreover, tariffs in Canada have increased the prices of Tesla vehicles by more than 20%.
Despite these challenges, Tesla is taking steps to boost sales. In China, both the Model 3 and Model Y were added to the rural EV promotion program this week. In an effort to boost domestic sales, Tesla has also introduced 0% financing on the new Model Y.
However, the Canadian government's decision to exclude Tesla from the iZEV rebate program, due to political backlash from Elon Musk's association with U.S. President Donald Trump, means that the company will not be included as long as U.S. tariffs on Canada continue.
In summary, while the Tesla Model Y remains the top-selling EV globally, overall sales including Model 3 and Model Y have declined somewhat in 2025, with particularly sharp drops in Europe and a moderate decline in China, and a notable decrease even in the US market. The challenges in Canada, due to the exclusion from the rebate program and tariffs, are adding to the company's woes.
- Tesla's decline in sales is not solely limited to one continent; the company's struggles are evident in business sectors such as Europe, China, and even the United States.
- Amid the mixed year for Tesla in 2025, the company is venturing into various areas of financial investment and technology to boost sales, including 0% financing on the new Model Y and participation in China's rural EV promotion program.
