Tesla Inc. has seen a substantial drop in sales in the Chinese domestic car market during the first week of July.
Key Statistics
- 5,010 new insured registrations were recorded in China
- This represents a 75.8% drop from the preceding week’s 20,700 registrations
- Sales are down 22.9% from the same time last year
- However, sales are up over 38% compared to Q2 2025
What’s Behind the Decline?
The decline in sales comes after Tesla recorded a better-than-estimated Q2 performance, with the company delivering over 384,122 vehicles in the quarter. The deliveries were largely driven by the Tesla Model 3 and Model Y.
Tesla’s Performance in Other Markets
In contrast, Tesla sales picked up over 12% in the UK, with the company delivering over 7,189 units during Q2 2025.
Challenges Facing Tesla
However, the company has had to deal with troubles stemming from Elon Musk’s political ambitions, including the announcement of the “America Party.” This move has been criticized by experts and has led to a decline in the company’s stock price.
Stock Performance
Tesla’s stock offers satisfactory Momentum and Quality while scoring well on the Growth metric. However, the stock offers poor Value.
Future Outlook
As the company navigates these challenges, it remains to be seen how Tesla’s sales will perform in the coming months. With the electric vehicle market continuing to evolve, Tesla will need to adapt to changing consumer demands and market trends to remain competitive.
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