Tesla Cracks the Code: Sales Dip in China—but They’ve Got a Winning Strategy

Tesla's Shanghai Gigafactory exported about 30,000 vehicles overseas in April 2025, recording its highest monthly export performance in the past 12 months. This export increase is analyzed to be due to increased overseas demand for the new Model Y, which was launched in China in January 2025.

According to Tesla, the new Model Y has set a new record for single-day orders since its launch in the Asia Pacific market, and in South Korea in particular, the official Tesla website temporarily went down on the first day of ordering, and consumers lined up long outside the showroom, showing a hot response.

During the first quarter of 2025, the Shanghai Gigafactory delivered a total of 172,000 units, including the Model 3 and the upgraded Model Y. In addition, the number of deliveries in March was 78,800 units, a 156% increase from 36,888 units in February.

Shanghai Gigafactory exceeded 3 million units in cumulative production in October 2024, accounting for about 40% of Tesla's global production.

Tesla's Shanghai Gigafactory's export performance in April shows that it is strengthening exports to overseas markets in response to the volatility of the Chinese domestic market.

1. Responding to uncertainty in the Chinese domestic market.

Tesla has recently been experiencing sluggish sales in the Chinese domestic market. In April 2025, sales in China were 28,731 units, down 61% from the previous month. In this situation, Tesla is maintaining production through exports.

2. Strengthening global competitiveness of the new Model Y.

The new Model Y is strengthening its competitiveness in the global market with its upgraded design and functions. In particular, the response in the Asia Pacific market, including Korea and Australia, proves that Tesla's product strategy is effective.

3. Emphasize the strategic importance of the Shanghai Gigafactory.

The Shanghai Gigafactory is strengthening its role as Tesla's global production and export hub. With cumulative production exceeding 3 million units and an increase in the export portion, it is occupying a key position in Tesla's global supply chain.

4. Need for differentiation strategy amid intensifying competition.

As competition among local companies such as BYD intensifies in the Chinese electric vehicle market, Tesla is attempting to differentiate itself through product upgrades and export expansion. However, continuous technological innovation and localization strategies are necessary to maintain long-term competitiveness.

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