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Tesla Sales Slide in China and Europe as BYD Surges, Model Y Rebounds in Key Markets

Tesla rolled out financing, software incentives following delivery declines tied to its CEO’s political controversies

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Customers sit in a Tesla Model Y electric vehicle (EV) at the carmaker's delivery centre in Beijing, China January 8, 2025. REUTERS/Florence Lo/ File Photo
New Tesla Model Y Boosts Sales in Two Key Markets. Is It Enough?: 2025 Tesla Model Y, Sales
A Tesla electric vehicle is parked at a Tesla dealership, after Tesla, Inc. released its financial results for the first quarter of 2025, in Berlin, Germany April 23, 2025. REUTERS/Annegret Hilse/File Photo

Overview

  • Tesla’s China shipments fell 15% in May to 61,662 vehicles, marking an eighth consecutive month of year-over-year declines from its Shanghai plant
  • U.S. deliveries dropped 10.6% in May to 46,150 units as average monthly sales slipped from 51,455 a year earlier
  • BYD delivered a record 382,476 vehicles globally in May and outsold Tesla in Europe for the first time in April, leading new-energy vehicle sales in Germany with 1,857 registrations
  • The refreshed Model Y drove a 213% sales surge in Norway (2,346 units) and a 122.5% jump in Australia (3,580 units), even as most European markets posted double-digit declines
  • Tesla introduced new financing offers and free Full Self-Driving and Enhanced Autopilot transfers after months of delivery drops tied to Elon Musk’s political involvement