In Q1 2025, Tesla’s sales in China totaled 172,754 vehicles, a 21.79% decline compared to the same period in 2024, when 220,876 vehicles were sold. The decrease was driven largely by the production transition for the revamped Model Y, which required temporary adjustments at Giga Shanghai[4][5]. Despite this, Tesla China saw significant momentum in March 2025 with 78,828 cars sold, marking a 156.87% month-over-month increase from February, although it was still 11.49% lower than March 2024[4][5].
Tesla’s domestic sales in China were bolstered by the updated Model Y, which was launched in January 2025. After initial disruptions to production, the new Model Y became a top seller, with 43,370 units sold domestically in March, making it the month’s best-selling vehicle in China[1][4]. However, Tesla faces stiff competition from domestic rivals like BYD, which has compounded the company’s challenges in maintaining market share in the region[4][8].