Tesla’s performance in the world’s largest electric vehicle (EV) market continued to soften in July, with the U.S. automaker delivering 67,886 vehicles from its Shanghai Gigafactory, a figure that represents an 8.4% decline year-over-year and a 5.2% drop from June.
The data, published by the China Passenger Car Association (CPCA), includes both domestic deliveries and exports to global markets. A breakdown between these figures will be available later this week.
This latest dip marks a continuation of Tesla China’s downward trajectory. Despite a slight 0.8% year-over-year uptick in June, July’s numbers bring back a broader trend of cooling demand, with year-over-year declines recorded in nine out of the last ten months.
From January to July 2025, Tesla China sold a total of 432,360 vehicles, down 13.7% compared to the same period last year.
The Model Y, once the best-selling car in China with over 480,000 units sold in 2024, has seen its momentum wane in 2025. Sales of the mid-size SUV reached 171,491 units in the first half of the year, representing a 17.5% drop compared to the same period in 2024.
In an effort to revitalize interest, Tesla is preparing to launch a new variant later this year—the six-seat Model Y L. Recently approved by China’s Ministry of Industry and Information Technology, the new version is significantly larger than its five-seat counterpart, featuring a length of 4,976 mm and a 3,040 mm wheelbase. The vehicle will be powered by ternary NMC batteries supplied by LG and is aimed at competing with popular Chinese three-row SUVs.
While the exact launch date for the Model Y L has not been disclosed, the model is expected to debut in the fall in a market where multi-passenger vehicles are gaining popularity.
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