Tesla saw a notable rebound in China last month, with retail sales climbing 40.7% in August compared to July, according to data from the China Passenger Car Association (CPCA). The automaker sold 57,152 vehicles locally, up from 40,617 in July, marking one of the strongest month-to-month improvements so far in 2025 (via @piloly).
Wholesale deliveries also surged, with Tesla’s Shanghai Gigafactory producing 83,192 vehicles in August, up 22.6% from July. Of these, 24,304 were Model 3 sedans and 58,888 were Model Ys, while 26,040 units were exported. The Model Y continued to dominate, accounting for 69% of local sales and ranking as the country’s second best-selling vehicle.
While August’s results highlight momentum, Tesla still faces challenges in China. Year-over-year retail sales in August fell 9.9% compared to the same month in 2024, marking the sixth decline in eight months this year. From January through August, Tesla delivered 361,179 cars in China, down 6.9% year-over-year. Wholesale sales during the same period also slipped 12.2% from last year.
Competition in China’s EV market remains fierce. Tesla recently cut the price of its newly launched Model 3 Long Range RWD — featuring a record CLTC range of 830 km — by $1,400 to better compete with local rivals. Meanwhile, the newly introduced Model Y L, a three-row, six-seat variant of Tesla’s best-selling electric SUV, is helping drive momentum. Reports indicate it averaged 10,000 orders per day in its first couple of weeks on sale, and domestic deliveries have already begun.
Even with the year-over-year declines, Tesla managed to expand its market share within China’s new energy vehicle sector. The company captured 5.2% of NEV sales and 8.3% of the battery electric vehicle market in August, up from 4.1% and 6.7% in July, respectively.
With September still to come, Tesla’s recent product launches and pricing adjustments could provide an additional lift in the final month of the quarter.
