Tesla China EV Sales Rebound with 2.8% September Surge
Shanghai factory roars back to life as Tesla defies market headwinds
The Numbers Don't Lie
September delivered the turnaround story investors were waiting for - a solid 2.8% monthly gain that signals Tesla's Chinese operations are finding their footing again.Production lines humming, delivery centers buzzing - while traditional automakers keep making excuses about supply chains and demand cycles, Tesla's Shanghai gigafactory is demonstrating what actual execution looks like.
Market Momentum Building
This isn't just about one month's numbers. It's about Tesla reclaiming its narrative in the world's largest EV market - because when you're playing in the big leagues, you either adapt or get left behind.While legacy manufacturers are still figuring out their first EV prototypes, Tesla's already on version 3.0 of its China strategy - a reminder that in the race toward electrification, being first matters more than being perfect.
Wall Street analysts scrambling to update their spreadsheets while Tesla keeps shipping cars - because nothing disrupts financial models quite like actual customer demand.
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The Elon Musk-led company also experienced a sales rebound in Europe in September, with France and Denmark reporting their first increases of 2025, supported by the launch of the revamped Model Y.
Tesla Is Making a Comeback with New EVs
Tesla appears to be making a meaningful recovery after months of sluggish sales. Notably, sales of Model 3 and Model Y vehicles produced at Tesla’s Shanghai factory, including those exported to Europe and other regions, ROSE by 9.2% compared to August. Additionally, Tesla began its first deliveries of China-made EVs to India last month, further contributing to its sales growth.
For the quarter ending September 30, Tesla delivered 241,890 China-made EVs, marking the fourth-highest quarterly total for the company. Tesla’s global third-quarter deliveries also surpassed analysts’ expectations, partly due to customers advancing purchases ahead of the expiration of the $7,500 federal EV tax credit in the U.S. on September 30.
In contrast, rival Chinese leader BYD Co. (BYDDF) saw its first year-over-year drop in September sales in over 18 months. For Q3 also, BYD’s sales declined by 1.3%, marking the first quarterly sales decrease since 2020.
Tesla Makes Efforts to Regain Lost Momentum
Tesla is making efforts to regain its lost sales momentum in both the U.S. and international markets. Tesla introduced lower-cost versions of the Model Y and Model 3 in the U.S., with deliveries anticipated between December and January. This strategy aims to offset expected demand declines following the end of federal tax credits.
In China, Tesla announced a host of incentives to attract more buyers. Tesla is offering 0% APR financing on several models, paint credits, and free Full Self-Driving (FSD) transfer for new purchases. These deals aim to boost sales through October. Meanwhile, its Model Y Long Range has been spurring demand among family-oriented EV buyers in China.
Is Tesla Stock a Good Buy Right Now?
On TipRanks, TSLA stock has a Hold consensus rating based on 15 Buys, 13 Holds, and nine Sell ratings. The average Tesla price target of $363.60 implies 16.5% downside potential from current levels. Year-to-date, TSLA stock has gained 7.9%.
