Tesla breaks 8-month China sales slump

Tesla’s (NASDAQ:TSLA) China-made electric vehicle sales rose 0.8% year-over-year in June to 71,599 units, ending an eight-month decline. The marginal recovery comes amid mounting competition from lower-priced models launched by Chinese rivals.

Deliveries of its Shanghai-made Model 3 and Model Y vehicles, including domestic sales and exports to Europe and other markets, climbed 16.1% from May, Reuters reported, citing data from the China Passenger Car Association (CPCA).

The performance still lags major Chinese rivals by a significant margin. Chinese rival BYD (OTCPK:BYDDF) (OTCPK:BYDDY) delivered 382,585 vehicles globally in June, which marked a new high for the year and represented a 10.5% increase year-over-year.

Other local EV competitors, including NIO (NIO) and XPeng (XPEV) also reported higher sales on an annual basis. Nio (NIO) delivered 24,925 vehicles in June 2025, representing an increase of 17.5% year-over-year, while Xpeng (XPEV) delivered 34,611 vehicles last month, marking a 224% year-over-year increase.

Tesla (NASDAQ:TSLA) is also facing mounting pressure in Europe, with registrations in Denmark and Sweden down over 60% last month. Looking ahead, the Texas-based carmaker is expected to release its Q2 deliveries report today and its earnings report in a few weeks. Seeking Alpha analyst Cavenagh Research expects the company’s Q2 fundamentals to be a “disaster.”

Shares of Tesla (TSLA) were up 1.1% premarket on Wednesday.