New six-seater Model Y gives Tesla China a much-needed sales boost

Tesla's sales in China finally got some positive news in September, putting an end to a two-month streak of declining performance. The company sold 90,812 vehicles produced at its Shanghai factory - a modest 2.8% increase compared to the same month last year. Tesla investors will surely welcome any change in the trend, but a wider look at the numbers shows the road ahead is not getting any easier.

The September sales recorded a solid 9.2% jump from the 83,192 cars sold in August. The slight annual growth comes after two consecutive months of falling behind last year's pace, with sales dropping 4.0% in August and 8.4% in July.

The bigger story here is the performance for the year so far. From January to September 2025, Tesla China sold a total of 606,364 electric cars. This sounds like a huge number, but it is actually a 10.3% decline from the same nine-month period in 2024, revealing a struggle to keep up with last year's momentum.

What gave Tesla that much-needed boost in September? The most likely answer is a new seating arrangement. In late August, the company launched a new version of its best-selling Model Y - the aptly named Model Y L. This variant adds a third row of seats and a few extra inches of floor space, expanding its capacity to six passengers.

Deliveries began in early September, and the new family-focused option appears to have resonated with Chinese buyers, helping to push the monthly sales numbers into positive territory. In a market where practicality is highly valued, adding more room can make a big difference for many customers.

The Giga Shanghai facility is responsible for producing both the Model Y SUV and the Model 3 sedan. The factory serves the vast Chinese domestic market, but it also acts as an export hub for other parts of Asia and Europe. This dual role leads to a predictable, yet sometimes confusing, monthly sales pattern.

Typically, Tesla dedicates the first half of each quarter to manufacturing vehicles for export, before shifting its focus to local deliveries in the final month. For example, in August, about 31% of the cars made were exported. In June, the last month of the previous quarter, exports were only 14% as the company rushed to fulfill local orders. The specific breakdown for September's 90,812 vehicles has not yet been released.

Looking at the third quarter as a whole, from July through September, Tesla China produced 241,890 vehicles. This was a 26.2% increase over the second quarter but still represented a 2.9% dip compared to the third quarter of 2024.

The Shanghai factory's output is incredibly important for the company's global health, accounting for nearly half - a massive 48.7% - of Tesla's worldwide sales during that period. This heavy reliance means that any slowdown or hiccup in China has a major impact on the company's overall performance.

Tesla isn't sitting still. Chinese regulatory filings recently revealed that Tesla is looking for approval for another new version of the Model Y. This one is a Long Range, Rear-Wheel Drive model. It will offer one of the longest driving ranges available, projected to exceed 497 miles under China's testing standard, while potentially coming in at a lower price point than the current dual-motor All-Wheel Drive versions.

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