Tesla Model Y Breaks Out Of 2-Month Sales Slump In China With Strong June Recovery

Tesla’s Model Y saw a strong rebound in China last month, with June sales climbing 9.1% year-on-year to 44,848 units after two months of decline. 

Compared to May, sales jumped 81.1%, CnEVPost reported, citing figures from the China Passenger Car Association.

However, despite the June uptick, Model Y’s cumulative sales for the first half of 2025 fell 17.5% year-on-year to 171,491 units, reflecting persistent weakness earlier in the year.

The Model 3, Tesla’s other key offering manufactured at its Shanghai factory, recorded retail sales of 16,636 units in June in China, down 8.4% year-on-year. 

Nonetheless, the sedan posted a 30.4% increase in first-half sales to 91,919 units compared to the same period in 2024.

Tesla’s export performance from China showed mixed results. The EV giant’s Model Y exports were up 125.5% year-on-year in June to 6,405 vehicles, recovering from recent lows. However, this was down 56.6% month-over-month. 

Model Y exports from China totaled 42,543 units for the first half of 2025, down 13.5% year-on-year. 

Tesla Model 3 exports declined to 3,710 units in June, representing a 58.3% year-over-year decrease and a 55.4% month-over-month drop. For the first half, Model 3 exports were down 41% to 58,521 units.

The EV maker delivered 71,599 vehicles built at its Shanghai plant in June, representing a slight 0.8% increase from the same period a year earlier and marking the end of eight consecutive months of declines.

However, the factory’s second-quarter output still fell 6.8% from the year-ago period, a third straight quarter of decline.

Tesla’s Shanghai plant also caters to exports to Europe, as well as local deliveries.

Global deliveries in the second quarter fell 14% to 384,122 vehicles, below analyst estimates of 387,000. Still, Dan Ives from Wedbush called the results “better than feared” and highlighted Model Y momentum in China. 

Meanwhile, Gene Munster of Deepwater said deliveries may have bottomed, with investor focus shifting to autonomy and robotaxis.

On Stocktwits, retail sentiment for Tesla was ‘extremely bearish’ amid ‘high’ message volume.

Tesla’s stock has declined 21.5% so far in 2025.

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