New Tesla Model Y; via Tesla. Tesla (TSLA) sales declined quarter-over-quarter in China despite the Model Y refresh being available and offering record discounts. It goes directly against what the automaker claimed after the first quarter. After Tesla’s poor delivery performance in Q1, the company blamed the Model Y design changeover for limiting production and availability of its best-selling vehicle. The company reported a 13% drop in deliveries compared to Q1 2025. Despite Tesla ramping up production of the Model Y to normal levels in Q2, the company experienced an even worse delivery performance, with global deliveries down 13.5% last quarter. Advertisement - scroll for more content Tesla is notoriously he most opaque automaker in the world when it comes to breaking down sales per model and market, making it hard to track the health of its vehicle programs in different markets. However, registration data provides a much clearer picture, and this picture contradicts Tesla’s claim. In Q2, all variants of the new Model Y became available in China, the world’s largest automotive market, and Tesla still delivered fewer vehicles than in the first quarter. The China Passenger Car Association (CPCA) released the data today, confirming that Tesla delivered 128,803 vehicles in China during Q2 2025. That’s down 4.3% compared to the 134,607 vehicles delivered in the first quarter. Year-over-year, the decline is even bigger at 11.7% compared to Q2 2024. The quarter-over-quarter decline occurred despite the broader availability of the new Model Y. Additionally, Tesla was offering record discounts on both the Model 3 and Model Y in China, with 0% financing, equivalent to a $2,000 to $4,000 discount per car, depending on the model and terms. Electrek’s Take