Week 24/25 Updates from Tesla: Introducing New Model S and X, Advancement in Robo-Taxi Service, Musk Expresses Regret, Breaking Records on the Race Track
Tesla's sales performance in China in 2025 has presented a complex picture, with a notable decline followed by a modest recovery.
For the second quarter of 2025, Tesla China sold 191,720 vehicles, representing a 6.8% decrease compared to Q2 2024. This marks the third consecutive quarter of year-over-year declines in this market. For the first half of 2025, Tesla China delivered 364,474 vehicles, down 14.6% from 426,623 units in H1 2024.
The decline was notably driven by a 24% drop in Model Y deliveries during early 2025 as it awaited a model refresh. However, Tesla's China operations reversed the downward sales trend in June 2025, selling 71,599 China-made vehicles, which is a 0.8% year-over-year increase after eight straight months of decline. This also represented a 16.1% increase over May 2025 sales (61,662 units).
The June rebound was particularly helped by the strong demand for the redesigned New Model Y, which saw a weekly surge in registrations toward the end of June. However, overall Q2 2025 still saw a year-over-year sales drop of 10.9% compared to Q2 2024. Export volumes from Shanghai also grew, with 23,074 units in May, a 32.9% increase year-over-year, but domestic retail sales remained challenged, falling 30.1% year-over-year in May.
Tesla faces intensified competition in China, especially from local rival BYD, which has aggressively expanded with lower-cost EVs and advanced technology features. BYD's global sales rose 11% in June 2025 to 377,628 vehicles, dwarfing Tesla’s volumes in China and putting pressure on Tesla’s market share.
Elsewhere, Tesla is making significant efforts before the start of real-world tests of Tesla's robotaxis in Austin, USA, scheduled for June 22. Last week, a driverless Model Y was filmed in Austin with a person with a laptop on the passenger seat, and a Model Y with a human driver following behind.
In Europe, all new registrations increased by 1.2% up to April 2025, and those of electric cars by 26.4%. Tesla's sales in Europe were downward, with a 36% decrease in Germany compared to May 2024.
In the US, S&P Mobility estimates a Tesla decrease of 16% to around 40,000 units in April. Meanwhile, Musk has been seen to be more focused on Tesla and SpaceX after announcing a new concentration in April and stating in May that he wants to stay on as CEO for at least five more years.
The refresh of Model S and Model X announced by Tesla could bring modest improvement, including a camera in the front bumper, ambient lighting, improved noise reduction, and new components for a more comfortable suspension.
In a recent development, Trump acknowledged Musk's apology and called him a "friend" again on Thursday, according to the New York Post, following a public dispute earlier in the month.
Sources: 1. [Tesla China Sales Down 30% in May, Signalling Prolonged Slump](https://www.cnbc.com/2025/06/01/tesla-china-sales-down-30-in-may-signalling-prolonged-slump.html) 2. [Tesla's China Sales Recover in June, But Challenges Remain](https://www.reuters.com/business/autos-transportation/teslas-china-sales-recover-june-but-challenges-remain-2025-06-29/) 3. [BYD Overtakes Tesla in China's Electric Vehicle Market](https://www.bloomberg.com/news/articles/2025-06-30/byd-overtakes-tesla-in-china-s-electric-vehicle-market)
Tesla's China sales surged by 0.8% year-over-year in June 2025, following eight consecutive quarters of decline, predominantly due to the strong demand for the redesigned New Model Y. Meanwhile, the escalating competition in China, particularly from local rival BYD and their advanced electric-vehicles, poses a significant challenge to Tesla's market share.
