Tesla China retail sales drop 12% in August but exports soar

Tesla’s sales in China rebounded sharply from July in August, but the company still recorded another year-over-year decline in its home market as Giga Shanghai increasingly becomes an export powerhouse.

According to new China Passenger Car Association (CPCA) data released on Tuesday, Tesla delivered 50,047 Model 3 and Model Y vehicles to customers in China during August. That was an 83.7% jump from just 27,249 in July, as we expected, but 12.4% below the 57,152 vehicles delivered in August 2025.

Yesterday, Drive Tesla reported the company recorded 86,166 China-made Model 3 and Model Y wholesale sales in August.

Through the first eight months of 2026, Tesla has delivered 316,251 vehicles in China, down 12.4% compared with the same period last year.

Giga Shanghai Exports More Cars Than Tesla Sells in China

While domestic sales have struggled, exports have gone in the opposite direction. In August, Giga Shanghai shipped 36,119 vehicles overseas, including Model 3 vehicles to Canada, a 38.7% increase year-over-year. Although that was well below July’s record 66,330 exports, it brought the 2026 total to 331,443 vehicles – already more than the factory has delivered within China this year.

Source: China Passenger Car Association (CPCA) | Chart: Drive Tesla

Exports are up nearly 115% through August and now account for 51.2% of Giga Shanghai’s wholesale volume. That strength helped push Tesla China’s total wholesale sales to 647,694 vehicles through August, up 25.6% year-over-year despite slower domestic demand.

Tesla is now trying to finish the quarter on a stronger note. The company launched new inventory discounts this week on Model 3 and Model Y inventory delivered by September 30, along with financing deals to entice buyers to take quick delivery.