Tesla delivered 85,982 new energy vehicle units from its Shanghai Gigafactory in May, representing a 39.4% year-on-year increase compared to May 2025, according to preliminary data from the China Passenger Car Association (CPCA) [1]. The Shanghai facility produces Model 3 and Model Y vehicles for both the Chinese market and several overseas destinations [1]. This surge in Tesla's sales coincides with a broader rebound in China's electric vehicle (EV) market, as total passenger EV sales from domestic manufacturers reached 1.36 million units in May, up 12% year-on-year and 11% higher than April's total [1].
Other key players in the Chinese EV market also reported notable figures. BYD ended an eight-month streak of declining sales by delivering 376,990 new energy passenger vehicles in May, a marginal 0.02% increase from the previous year [1]. Stellantis-backed Leapmotor and Geely's Zeekr both saw their sales surge by more than 80% year-on-year, while Nio posted a 62.3% increase after launching its first flagship EV in over two years [1]. Xiaomi delivered over 30,000 EVs in May, a 7.1% year-on-year rise, and launched the YU7 GT SUV, which reportedly set a lap record at the Nürburgring racetrack in Germany [1]. In contrast, Li Auto and XPeng experienced year-on-year sales declines of 18.4% and 4.1%, respectively [1].
Tesla's strong May sales followed the company's announcement on May 21 that it had made its FSD (Supervised) self-driving system available in China, after CEO Elon Musk attended a summit between U.S. and Chinese leaders [1]. However, there is uncertainty regarding the actual availability of FSD (Supervised) to mainstream consumers, as local media reported on May 29 that Tesla faces a lawsuit from 10 Chinese car owners alleging false claims about the system's availability, given the lack of regulatory approval [1]. Tesla has not commented on the lawsuit as of the report's publication [1].
CONCLUSION
Tesla's significant sales growth in China during May highlights a recovering domestic EV market and strong demand for its vehicles. However, regulatory uncertainties around its self-driving technology and ongoing legal challenges could impact future momentum. The overall market environment remains competitive, with several Chinese automakers also posting robust gains.