Tesla’s China sales jumped nearly 60% in June compared to May, with the electric carmaker selling 61,484 vehicles to Chinese customers. This strong performance marked the company’s second-highest monthly sales in 2025, trailing only March’s 74,127 units. The June figures also showed a 3.75% increase from the same month last year. This surge in sales comes as Tesla continues to expand its presence in the Chinese market, capitalizing on increasing demand for electric vehicles. Meanwhile, Tesla’s sales performance in the US has faced its own challenges, with fluctuating consumer interest and supply chain issues affecting overall growth. As a result, the company is focusing on strategic initiatives to boost sales domestically.
Tesla’s China sales surged 60% in June, marking the company’s second-best monthly performance in 2025.
The Model Y led Tesla’s comeback in China, becoming the country’s best-selling car in June. Tesla sold 51,253 Model Y units, including exports, which represented a 16.6% year-over-year rise and a 29.7% jump from May. The popular SUV captured 9.3% of China’s battery electric vehicle market share as more Chinese buyers chose electric cars. Battery electric vehicles now make up 31.7% of all new car sales in China. The growing demand for the Model Y has also sparked discussions about Tesla Model Y price fluctuations, as potential buyers weigh their options amidst changing market conditions. Analysts predict that continued innovation and improvements in battery technology may further drive the vehicle’s popularity. As Tesla solidifies its position in the Chinese market, it is expected that competitors will respond by enhancing their own electric vehicle offerings.
While the Model Y thrived, the Model 3 continued to struggle. Sales of the sedan dropped to 20,346 units in June, falling 24.8% from last year and 8.1% from May. Chinese consumers increasingly prefer SUVs and crossovers like the Model Y over traditional sedans. The Model 3’s range was extended by 40 km CLTC while its acceleration improved to 3.8 seconds from 0-100 km/h.
Tesla’s strategy shift at its Shanghai factory helped enhance domestic sales. The company moved away from exports early in the quarter to focus on Chinese deliveries. This change resulted in June exports dropping 56.2% from May to just 10,115 units. However, the second quarter still saw total exports rise 64.9% compared to the first quarter.
Despite June’s strong showing, Tesla faces challenges in China. The company’s market share fell from 12.02% in June 2024 to 9.3% this year as competition intensified. Year-to-date retail sales through June totaled 263,410 units, down 5.36% from 2025’s first half. Tesla also raised prices on its Long-Range Model 3 by $1,400 in China during this period. Tesla’s vehicles come equipped with advanced security features like Sentry Mode, which uses eight external cameras to create a comprehensive surveillance system for parked cars.
The June surge came at a pivotal time for Tesla, as the company typically pushes hard at the end of each quarter. Total vehicle sales, including exports, reached 71,599 units in June, up 16.1% from May.
Tesla has now sold about 40% of its 2024 China total in just the first six months of 2025, indicating slower growth ahead. This trend suggests that competition in the electric vehicle market is intensifying, with major brands adjusting their strategies to maintain market share. As companies like Volkswagen ramp up their efforts, they are betting big on their volkswagen robotaxi strategy by 2027 to redefine urban transportation. Tesla will need to innovate rapidly to keep pace with these shifting dynamics and retain its leadership position. As the landscape evolves, the differing views from tesla fan and critic perspectives are becoming increasingly prominent. Supporters argue that Tesla’s brand loyalty and technological advancements will continue to give it an edge, while detractors highlight the risks associated with waning market share and rising competition. Ultimately, the company’s ability to navigate these challenges will be crucial in shaping its future trajectory in the electric vehicle sector.