Tesla Inc. has seen a significant drop in registrations in China, with a 27.5% decline from the same period last year. According to recent data, Tesla recorded 10.3K new insured registrations in China from August 18 to August 24.
Tesla Insurance Registrations Slip in China
Despite the year-over-year decline, the quarter is still shaping up to be positive for Tesla, with sales figures recording a 47.9% improvement over the previous quarter in 2025. However, the company is facing challenges in the Chinese market, with registrations down 27.5% from the same period last year.
Model Y L and Model 3+ for the Chinese Market
Tesla has been introducing new models to the Chinese market, including a 6-seater trim of the Model Y called the Model Y L, and a long-range variant of the Model 3 sedan called the Model 3+, which promises to offer over 500 miles of range on a single charge. The company had recorded over 14k new registrations in the Chinese market last week.
Tesla Runs Low on Model Y Inventory
The news comes as Tesla is reportedly running low on Model Y inventory in various cities across the U.S. In response, the company has begun offering $0 down leases on used Model 3 and Model Y units in the U.S. up to 15,000 miles annually, with the leases only available in California and Texas.
Current State of Tesla
Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. The company’s efforts to introduce new models and offer competitive leasing options are aimed at boosting sales and improving its market position.
What’s Next for Tesla?
As Tesla continues to navigate the challenges in the Chinese market and address inventory shortages, the company’s future prospects will depend on its ability to innovate and adapt to changing consumer demands. With the introduction of new models and competitive leasing options, Tesla is well-positioned to rebound and regain its momentum in the market.