Tesla’s Model Y is catching fire in China, where August sales jumped 48% compared to May despite struggling against last year’s numbers. The electric SUV sold 57,152 units through retail channels in August, making up 69% of Tesla’s local sales. It ranked as China’s second best-selling vehicle that month.
Tesla’s Model Y surged 48% from May to August, becoming China’s second best-selling vehicle despite year-over-year challenges.
The surge comes as Tesla introduces the Model Y L, an extended wheelbase version with six seats. Deliveries of this new model started in August. Chinese consumers prefer larger interior spaces, and the six-seat configuration targets this preference directly. The Model Y L’s success has helped improve Tesla’s momentum in China during the second half of 2025. The new variant offers a CLTC range of up to 751 kilometers, significantly extending the vehicle’s driving distance between charges.
Tesla’s Shanghai factory recorded its best wholesale month of 2025 in August with 83,192 units, up 22.6% from July’s 67,886. The Model Y accounted for 58,888 wholesale units while the Model 3 contributed 24,304. The company exported 26,040 vehicles from China that month.
Despite recent gains, Tesla faces challenges. August sales remain 10% lower than the same month in 2024. Year-to-date sales are down 7% against 2024 levels. The Model Y saw year-on-year declines in five of the first seven months of 2025. July sales dropped 31.4% from June to just 30,766 units.
Tesla’s working to expand its market reach. The company plans to launch a cheaper Model Y variant without features like the panoramic roof, rear screen, and light bar. This stripped-down version could cost 20% less than current models. The Model Y Long Range currently sells for 339,900 yuan, about $52,600, while the Performance version costs 369,900 yuan, roughly $57,200. Recent dependability studies show the Model 3 as Tesla’s most reliable vehicle with 74/100 reliability scores, which could influence buyer confidence across the lineup.
The Model Y has become Tesla’s most important model in China. SUVs remain more popular than sedans among Chinese buyers, giving the Model Y an edge over the Model 3. The vehicle’s instant torque from its electric powertrain delivers rapid acceleration that appeals to performance-oriented Chinese consumers. Tesla ranked ninth among all automakers in China during August.
Through the first seven months of 2025, Tesla China sold 432,000 vehicles including domestic and export sales. The company exports Model Y crossovers from its Shanghai factory to Europe and other markets worldwide.