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Tesla has faced a 12.2% decline in vehicle sales in China, selling 515,552 vehicles from January to August 2025. Despite this, the company saw a rebound in August with local sales increasing by 41% month-over-month to 57,152 units. Tesla’s Giga Shanghai achieved its highest wholesale figure this year, producing over 83,000 vehicles.
To regain its competitive edge, Tesla has filed for the approval of a new Model Y+ variant that features a 225 kW (302 hp) single-motor setup and a potential range of approximately 800 kilometers (nearly 500 miles). The Model Y accounts for around 70% of Tesla’s sales in China, indicating its significance in the market, along with recent variations like the Model Y L to attract family-oriented buyers.
Competing firms have reported strong sales, with BYD delivering 582,500 pure EVs in Q3 2025 (up 31% year-over-year), while NIO and XPeng also posted record deliveries of 87,071 and 116,007 vehicles, respectively. Meanwhile, Tesla’s global deliveries in Q3 reached 497,099 vehicles, an increase of 7.4% year-over-year but still behind BYD’s total.
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