Electric vehicle (EV) maker Tesla (TSLA) has finally seen a rebound in China sales, its second-largest market. According to the China Passenger Car Association (CPCA), Tesla recorded a 0.8% increase in June, delivering 71,599 units and breaking an eight-month losing streak. Meanwhile, deliveries of Tesla’s China-made Model 3 and Model Y autos surged 16.1% compared to May. These figures include vehicles sold both within China and exported to other markets.
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Moreover, Tesla reported a 46.7% year-over-year increase in insurance registrations for the week ending June 29. This marks Tesla’s highest weekly total in the second quarter of 2025 and the second-best week of the year so far. The CPCA is expected to release Tesla’s full China auto delivery data for Q2 in the coming days. Unfortunately, TSLA stock dropped 5.3% yesterday following the escalated feud with U.S. President Donald Trump.
Tesla China Registrations Hit a Record High
Tesla China reported 20,680 insurance registrations in the last week of June, marking its best performance of the June quarter. The number represents a 49.86% jump over the previous week and a 46.7% year-over-year increase. These figures suggest that Tesla’s vehicles in China are finally experiencing a rebound in domestic demand.
According to reports, Tesla delivered 15,210 revamped Model Y autos in the last week, marking another weekly high since its launch, while the company delivered 5,470 units of the Model 3.
Tesla has been witnessing a consistent rise in demand over the past couple of weeks, lifting overall registrations for June and Q2 to a high point. Nonetheless, Tesla’s Q2 totals still show a decline over the prior year. Compared to Q1FY25, Tesla’s China registrations fell 4.6%, while compared to Q2FY24, registrations were down 10.9%.
Tesla Revamps Model 3 and Model Y in China
Tesla made minor updates to the long-range versions of its Model 3 and Model Y in China, which are manufactured at its Gigafactory Shanghai. The EV maker upgraded the range and performance for long-range variants.
Additionally, the company increased the price of its revamped Model 3 Long Range All-Wheel Drive by RMB 10,000 ($1,400), bringing it to RMB 285,500 (about $39,300). The price of the revamped Model Y remains unchanged at RMB 313,500 ($43,759). Moreover, according to CNEV Post, delivery wait times for the long-range variants of both models have been shortened to one to three weeks, down from three to five weeks.
Notably, Tesla is facing the challenge of an aging lineup, while rivals continue to innovate and launch newer models. In China in particular, Tesla faces stiff competition from domestic player BYD Co. (BYDDF) and smaller players such as Nio (NIO), XPeng (XPEV), and Li Auto (LI).
Is Tesla a Buy, Hold, or Sell?
On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell ratings. Also, the average Tesla price target of $291.31 implies 3.1% downside potential from current levels. Year-to-date, TSLA stock has lost 25.5%.
