Overview

• Tesla reported a 13.5% year-over-year drop in global deliveries during Q2 2025.
• China vehicle deliveries declined 4.3% from the first quarter and 11.7% year-over-year even with full Model Y availability.
• Record 0% financing in China worth $2,000–$4,000 per car did not reverse weakening demand for the Model 3 and Model Y.
• Chinese rivals Xiaomi and Xpeng have secured over 300,000 orders for their YU7 and G7 SUVs by undercutting Tesla on price and features.
• Heightened tariff pressures and an aging product lineup have intensified the urgency for Tesla’s upcoming model updates.