Tesla recorded a notable rebound in China during August, with retail sales climbing sharply compared to July and delivering one of the strongest month-to-month improvements this year. While year-on-year figures remained lower, the automaker managed to expand its market share in the world’s largest electric vehicle (EV) market, signaling momentum heading into September.
August Sales
According to data released by the China Passenger Car Association (CPCA) on Monday, Tesla sold 57,152 vehicles in China during August 2025. This represents a 9.93% decline from the 63,456 units sold in the same month last year.
Despite the drop, August sales rose sharply by 40.71% compared to July, when Tesla recorded 40,617 retail deliveries. The increase also translates to a strong 48.1% quarter-over-quarter gain versus May.
This marks the sixth year-on-year decline in Tesla’s domestic sales across the first eight months of 2025. Growth was only recorded in March and June, highlighting persistent competitive pressure in the Chinese EV landscape. From January through August, Tesla delivered 361,179 cars in China, a 6.91% decrease compared to the same period in 2024.
Exports and Production
Tesla’s Shanghai Gigafactory continues to serve both domestic and international markets, producing the Model 3 sedan and Model Y SUV. In August, the facility exported 26,040 vehicles, up 12.04% year-on-year but down 4.51% compared to July. From January to August, total exports reached 154,373 units, reflecting a 22.6% decline versus last year.
The company’s production cycle typically prioritizes exports in the first half of each quarter and shifts focus to domestic deliveries later on, a pattern evident in the August rebound in local sales.
Model Breakdown and Wholesale Performance
Including exports, Tesla’s wholesale sales in August totaled 83,192 vehicles, down 4.04% year-on-year but up 22.55% from July. Model Y led the charge with 58,888 wholesale deliveries, up 4.58% from the previous year and 28.47% from the prior month. Model 3 sales reached 24,304 units, down 20.02% year-on-year but still showing a 10.23% month-on-month rise.
From January to August, Tesla’s combined wholesale sales from China stood at 515,552 units, marking a 12.24% decline year-on-year. Model Y accounted for 318,760 units, down 10.13%, while Model 3 totaled 196,792 units, down 15.45%.
Market Share
While Tesla’s retail sales slipped year-on-year, its market share within China’s fast-growing new energy vehicle (NEV) sector improved. NEV retail sales across China totaled 1.1 million units in August, up 7.5% compared to last year. Battery electric vehicles (BEVs) accounted for 686,000 of these, a 17.2% increase, according to CNEvPost.
Tesla captured 5.19% of the NEV market in August, up from 4.12% in July, and claimed 8.33% of the BEV market, rising from 6.69% the month prior. This indicates Tesla’s relative position strengthened despite overall declines in volume.
What’s Next
Despite a challenging year marked by six months of declining domestic sales, Tesla’s strong quarter-on-quarter growth in August suggests momentum may be building. With the recent launch and ramp-up of the new Model Y L in China, which has reportedly been receiving 10,000 orders per day, September could deliver stronger results and help Tesla regain ground in an increasingly competitive market.
