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Tesla Deliveries Fall 13.5% Globally as China Sales Slip Despite Model Y Refresh

Incentives did not boost demand in China against cheaper, feature-packed rivals.

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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.