As of May 2025, the best-selling SUV in China is the Tesla Model Y, an American-made vehicle. According to insurance registration data, 24,770 units of the Tesla Model Y were sold in May, surpassing both the BYD Song Plus EV, with 24,240 units, and the Geely Xingyue L, which sold 21,014 units. Despite a 38% drop in Model Y sales compared to May 2024, when 39,985 units were sold, Tesla’s SUV still managed to secure the top spot for the month.
However, Tesla’s overall sales in China have been declining. The company’s total sales for May 2025, including all models, were 38,588 units, a 30% drop from the same month in 2024. In fact, Tesla’s monthly sales in China have decreased in four out of the five months between January and May 2025. This is in stark contrast to the 22.4% growth in total EV sales in China during May 2025. Tesla’s position in the Chinese market seems uncertain.
Tesla’s Model Y is produced at the company’s Gigafactory Shanghai, which holds the distinction of being the first Tesla plant built outside of the United States. It is also the only fully foreign-owned automotive factory in China. Along with the Model Y, the Gigafactory Shanghai manufactures the Tesla Model 3 sedan. The factory reached an annual production capacity of 950,000 units in September 2024, making it Tesla’s largest production facility globally.
In addition to serving the Chinese market, Gigafactory Shanghai is a major export hub for Tesla. The vehicles produced here are shipped to countries including New Zealand, Singapore, Japan, Norway, and Germany, among others.
It is important to note that the Tesla Model Y is also produced at three other Tesla plants: in Fremont, California, Gigafactory Texas, and Gigafactory Berlin-Brandenburg. Additionally, the Model 3 is produced in Fremont, while the Tesla Cybertruck is exclusively made in Gigafactory Texas.
