Tesla (TSLA.US) recorded wholesale sales of 83,192 vehicles in China in August, down 4% compared with the same period last year. However, sales rose 22.6% month-over-month from July’s 67,886 units. Notably, Tesla’s market share has come under pressure this year as competition in China’s new energy vehicle (NEV) sector intensifies. For reference, Tesla’s cumulative sales in China during the first half of 2025 reached 263,400 units, representing a 5.4% year-on-year decline.
The most direct consequence of declining sales has been weaker revenue and profit. According to Tesla’s latest quarterly financial report, total revenue in the first half of 2025 stood at $41.8 billion, down 11% year-on-year. Net profit fell 30% to $2.327 billion, compared with $3.348 billion a year earlier. In the second quarter alone, net profit was $1.172 billion, a drop of 20.7% year-on-year. Tesla attributed the revenue decline to the impact of U.S. tariff policies and continued macroeconomic instability.
On August 19, Tesla launched the Model Y L in China, a six-seat SUV tailored to local demand. The model offers enhanced comfort features and a larger battery pack, upgraded from 78.4 kWh to 82 kWh, delivering a range of 751 kilometers. On September 1, Tesla cut the price of the Model 3 Long Range RWD in China by RMB 10,000, lowering it from RMB 269,500 to RMB 259,500. These moves—the launch of the Model Y L and the price adjustment for the Model 3—are expected to boost Tesla’s September sales.
It is worth noting that Tesla’s sales weakness this year is not limited to China. In Europe, sales have also faltered. Data shows that from January to July, Tesla sold 119,000 vehicles in Europe, down 33.6% year-on-year. To revive momentum, Tesla will introduce a new high-performance version of the Model Y in Europe this September. Media reports suggest the model will be priced at around €62,990, while the entry-level rear-wheel-drive version will be offered at €45,990.
In the U.S.—Tesla’s home market—sales have also declined. In the first half of 2025, Tesla sold 271,600 vehicles in the U.S., down 11% year-on-year.
