Are you surprised that Tesla is gaining momentum again in China after months of declining numbers? The Tesla China sales rose by 3% in June 2025 to 61,484 units – and the Model Y secured the top spot among all passenger car models for the first time.
Strong growth in retail sales
The China Passenger Car Association (CPCA) reported for June:
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61,484 vehicles in retail sales (+ 3% YoY)
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Second best of the year after March
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Model Y with 51,253 deliveries (incl. export) (+ 16.6% YoY, + 29.7% MoM)
These figures demonstrate that Tesla’s end-of-quarter push in Shanghai is working again: Exports dominate the beginning of the month, then the focus shifts to the domestic market.
Market share & BEV penetration
In the highly competitive Battery Electric Vehicle (BEV) segment, Tesla holds its ground:
Despite a slight recovery, Tesla is still below last year and feels the pressure from domestic competitors like BYD, Li Auto, and Xiaomi.
Annual balance & export development
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YTD retail: 263,410 units (– 6% YoY)
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Total sales incl. export: 71,599 units (+ 0.83% YoY)
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Exports June: 10,115 units (– 56.2% MoM; – 13.9% YoY)
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H1-2025 exports: 101,064 units (– 31.9% YoY)
The decline in exports from Giga Shanghai highlights how strongly Tesla is prioritizing the domestic market while simultaneously sending new competitors into the race.
Outlook for Q3 and Competitive Pressure
Tesla’s Q2 China Retail fell to 128,803 units (– 11.7% YoY) and accounted for only 33.5% of the global Q2 volume – the lowest share in a year. It will be crucial whether price adjustments, model refreshes, and new features in Q3 can maintain momentum, or if Chinese manufacturers continue to take away market share.
Conclusion
The recovery of Tesla China sales in June shows that the Model Y continues to attract despite strong competition. To secure the upward trend, Tesla must keep an eye on prices, production processes, and product cycles, while market entrants like Xiaomi YU7 increase the tension.