Sales of Tesla’s China-made electric vehicles (EVs) dropped 15% year-over-year (YoY) in May. According to the China Passenger Car Association (CPCA), Tesla delivered 61,662 Model 3 and Model Y units from Giga Shanghai last month.
Tesla’s May sales are a wholesale figure and includes both domestic sales and exports. A breakdown of these figures is expected to be released later this week.
Despite the year-over-year decrease, May’s results showed a modest 5.5% improvement from April, where it delivered 58,459 units. Outside of 2025, Tesla’s sales in China have rarely dipped this low. According to data tracked by X user Tsla Chan, May 2025 was Tesla’s second-worst month in the past two years, with only February 2024—when sales typically drop due to the Chinese New Year—coming in lower at 60,635 units. February 2025 was lower still, with just 30,688 units sold.
In an effort to boost domestic sales, Tesla has introduced several incentives, including 0% financing on the new Model Y. Additionally, both the Model 3 and Model Y were added to China’s rural EV promotion program this week, the first time since the program was introduced in 2020, expanding their reach to price-sensitive buyers in less urban regions.
Tesla’s struggles are not limited to China. Across Europe, Tesla’s sales, and market share, have taken a hit due, largely due to the political controversy surrounding CEO Elon Musk, whose statements and affiliations have sparked protests and pushed away potential buyers in many countries.
Sales are also struggling in Canada, where tariffs have increased prices more than 20%. Adding to Tesla’s troubles in Canada, political backlash from Musk’s association with U.S. President Donald Trump resulted in most provinces, and the federal government, excluding the company from their vehicle, EV charger, and battery storage rebates, even before the price increases which made them ineligible came into effect.
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The Canadian government is planning to reinstate the iZEV rebate program, but officials have stated Tesla won’t be included so long as the U.S. tariffs on Canada continue.
