New registrations of Tesla vehicles in China fell 75.8% between June 30 and July 6, according to weekly insurance data published on Tuesday, marking the lowest level in two months and a sharp reversal from the prior week’s high.
Tesla registered 5,010 vehicles during the first week of the third quarter, down from 20,700 units in the final week of June — its highest weekly figure so far this year.
The decline followed a typical end-of-quarter sales push, with several carmakers also reporting lower registrations in early July — a period that often sees subdued activity as manufacturers adjust incentives and recalibrate for new quarterly targets.
Year to date sales in China are down 5.3% when compared to the first 27 weeks of 2024.
Tesla began the third quarter with minor updates to the Long-Range all-wheel-drive version of its Model 3 sedan in China.
The new variant offers 40km of additional range and faster acceleration — improving 0 to 100km/h performance from 4.4 seconds to 3.8 seconds.
The model’s price has been raised by 10,000 yuan ($1,400) to 285,500 yuan ($39,900).
From the total, 3,550 of the units were Model Ys. Sales figures for the best-selling SUV declined 76% from the prior week.
The company is currently offering a 0% interest loan on a 5-year financing plan for purchases of the refreshed Model Y Rear-Wheel Drive or Long Range All-Wheel Drive.
Customers must take delivery of the vehicle by July 31. The 0% APR financing plan also applies to the Model 3 Rear-Wheel Drive or Long Range All-Wheel Drive.
Tesla delivered 71,599 vehicles in the Chinese market last month, a nearly 1% increase from the same month last year, according to data released by China’s Passenger Car Association (CPCA).
The company reported 384,122 vehicles delivered globally in the second quarter, down from nearly 444,000 in the same period last year.
Tesla slightly missed its own compiled analyst consensus of 385,086 units, which was based on a survey of 29 analysts and released on June 27.
On Monday, Tesla shares dropped 6.79% as investors reacted to CEO Elon Musk’s announced plans to launch a new U.S. political party.
According to President Donald Trump, Tesla’s chief is going “completely ‘off the rails’.”
Investors are also concerned about the impact on Tesla of the “big, beautiful bill” signed by Trump last Friday.
The legislation eliminates both the $7,500 federal electric vehicle tax credit and Corporate Average Fuel Economy (CAFE) penalties, significantly weakening regulatory support for EV manufacturers.
In the Chinese market, Tesla was the best-selling company among EV makers. If considering new energy vehicle (NEV) brands, BYD has been taking the lead.
