Despite experiencing a downward trend in car sales across the globe, Tesla’s Model Y earned the top spot as the highest-selling SUV in China in May.
As reported by Teslarati, the Model Y had a much stronger showing in China in May compared to previous months, selling 24,770 units. That narrowly edged out the second-leading SUV, the BYD Song Plus, which sold 24,240 units.
While the margin of victory was just over 500 units, Tesla could see the sales numbers as a sign of things to come in one of the most competitive electric vehicle markets in the world.
In China, the BYD Song Plus has a starting price of around $21,000. This low price is due to a number of factors, including substantial government subsidies and a reliable domestic supply chain. Because of this, BYD can offer prospective car buyers much lower prices to get a leg up in the market.
On the flipside, the Tesla Model Y is listed at a starting price of just over $36,000 in China. This is thanks to a combination of import tariffs and the need to maintain profitability while struggling with rising production costs. Despite the much higher cost, the Model Y still ranks as one of the best compact electric SUVs according to Car and Driver.
While the May sales numbers in China can be viewed as an optimistic turning point for Tesla, the company will need to overcome a lot to salvage a tough first half of 2025. As noted by a report from CnEVPost, the Tesla Model Y has experienced a steady drop in sales in China in 2025. As of May, the company has sold 126,643 units so far, equating to a 24% year-over-year decrease.
Tesla’s struggles haven’t just been limited to China. The company revealed a massive drop in global vehicle sales in its first quarter earnings report. Many experts have attributed the sales slump to worldwide protests against Tesla, thanks to a number of controversies surrounding CEO Elon Musk.
Although Tesla has certainly struggled, more car buyers have turned to both new and used electric vehicles than ever before. EVs offer drivers zero tailpipe pollution, lower maintenance costs, and longer-lasting resale value.
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