Tesla (TSLA) gross sales declined quarter-over-quarter in China regardless of the Mannequin Y refresh being out there and providing document reductions. It goes instantly in opposition to what the automaker claimed after the primary quarter.
After Tesla’s poor supply efficiency in Q1, the corporate blamed the Mannequin Y design changeover for limiting manufacturing and availability of its best-selling car.
The corporate reported a 13% drop in deliveries in comparison with Q1 2025.
Regardless of Tesla ramping up manufacturing of the Mannequin Y to regular ranges in Q2, the corporate skilled a good worse supply efficiency, with world deliveries down 13.5% final quarter.
Tesla is notoriously he most opaque automaker on the earth with regards to breaking down gross sales per mannequin and market, making it exhausting to trace the well being of its car packages in numerous markets.
Nevertheless, registration knowledge supplies a a lot clearer image, and this image contradicts Tesla’s declare.
In Q2, all variants of the brand new Mannequin Y grew to become out there in China, the world’s largest automotive market, and Tesla nonetheless delivered fewer autos than within the first quarter.
The China Passenger Automotive Affiliation (CPCA) launched the info right this moment, confirming that Tesla delivered 128,803 autos in China throughout Q2 2025.
That’s down 4.3% in comparison with the 134,607 autos delivered within the first quarter. 12 months-over-year, the decline is even greater at 11.7% in comparison with Q2 2024.
The quarter-over-quarter decline occurred regardless of the broader availability of the brand new Mannequin Y. Moreover, Tesla was providing document reductions on each the Mannequin 3 and Mannequin Y in China, with 0% financing, equal to a $2,000 to $4,000 low cost per automobile, relying on the mannequin and phrases.
Electrek’s Take
What’s taking place with Tesla in China? I feel folks ought to take discover of this.
China is the largest and best EV market on the earth, and Tesla is being quickly squeezed out of it. The nation is legendary for welcoming overseas firms attracted by its giant and rising market simply to be chewed out and changed by Chinese language firms.
I feel that’s what is going on in China. We now have already seen what a car just like the Xiaomi SU7 can do to Tesla’s Mannequin 3 gross sales in China, and now the identical factor is going on with the best-selling Mannequin Y.
The lately launched YU7 and Xpeng G7 are instantly concentrating on the Mannequin Y and they’re priced far more aggressively.
Each Xiaomi and Xpeng are fast to ramp up manufacturing, and due to this fact, Tesla might quickly really feel the influence of the newly launched fashions, that are believed to have already garnered over 300,000 orders mixed.
Tesla is getting ready to launch its new stripped-down Mannequin Y to attempt to sustain, however it’s going to be tough because the YU7 and G7 have a head begin and they’re already cheaper than the present Mannequin Y lineup whereas providing extra options.
