109 Comments Tesla (TSLA) sales are currently crashing in China, based on both new monthly and weekly data released today. That’s despite the new Model Y, record discounts, and incentives. Competition and a new electric vehicle (EV) price war are putting significant pressure on Tesla in China. Tesla experienced a slow first quarter globally, including in China, but the automaker attributed this to the Model Y design changeover, which reduced production throughout the quarter. The company doesn’t have this problem in Q2, and in fact, it benefits from pent-up demand for the new version of its best-selling car from the first quarter. Advertisement - scroll for more content Yet, the data now suggests that Tesla performed worse in Q2 than in Q1 in China, and it’s also underperforming significantly compared to the same period last year. New insurance registration data from China were released today, confirming that Tesla sold only 8,600 vehicles in China during the first week of June. It’s way below expectations and a drop of more than 4,000 units compared to the previous week, despite Tesla generally ramping up domestic deliveries during the last month of the quarter. Tesla’s deliveries in 2025 are now lagging 2024 by about 20,000 units: These lower sales are coming despite Tesla having higher discounts on its lineup than during the same period last year, including 0% interest loans. May retail and export data were also released, confirming that Tesla delivered 38,588 vehicles in China and exported 23,074 cars from China in May. In total, that’s 61,662 units, which is below the same period last year. Tesla’s wholesale deliveries in and from China have been down each month of 2025: Tesla’s lower performance in 2025 is especially concerning amid electric vehicle sales surging in China. They were up 35% in the first quarter and the trend is continuing in the second quarter.