Tesla's rebound in China was significant — yet it still fell short

Tesla's December Performance in China: A Mixed Bag for Investors

Tesla Inc (NASDAQ: TSLA) achieved record-breaking global deliveries in the third quarter, but experienced a slowdown in the following months of the fourth quarter.

Recent data on Tesla's wholesale vehicle numbers in China for December brings both encouraging and concerning news for shareholders.

• TSLA shares are among the day's biggest decliners. What’s driving the drop in Tesla’s stock?

December Sees Tesla Bounce Back

After delivering 86,700 wholesale vehicles in China in November, Tesla saw its numbers climb in December, according to new reports.

Figures published by Teslarati reveal that Tesla reached 97,171 wholesale vehicles in China for December.

As reported by CNEVPost, this represents a 3.6% increase compared to the same month last year and a 12.1% rise from November’s total.

This figure marks Tesla’s second-strongest month ever in China, surpassed only by the 100,291 vehicles delivered in November 2022.

The robust December results may signal renewed demand in China and nearby markets, with two consecutive months of year-over-year growth. The wholesale total includes both vehicles sold domestically and those exported abroad.

For November, Tesla’s numbers were split between 73,145 vehicles sold in China and 13,555 exported units.

Challenges and Decline in 2025

Although December’s performance points to solid demand, it comes amid intensifying competition and other factors that may have influenced the results.

Despite the strong finish, Tesla’s total wholesale sales for the year reached 851,732 units—a 7.1% decrease from the previous year, falling short of expectations for annual growth.

In 2025, Tesla’s domestic sales in China totaled 531,855 vehicles by year-end. With the December numbers, the company missed its target of 657,105 for 2024, marking the first time Tesla has seen a year-over-year sales decline in the Chinese market.

This downturn is attributed to the transition at the Shanghai Gigafactory for the updated Model Y, as well as heightened competition in the region.

Looking back, 2025 was a year of fluctuations for Tesla, with demand softening in some areas due to increased rivalry and public perception of CEO Elon Musk. The third quarter, however, saw record deliveries, partly fueled by the expiration of the federal EV tax credit.

While future investor attention may shift toward Tesla’s innovations in robotaxis and robotics, vehicle sales remain a crucial part of the company’s financial health and narrative.

Image source: Shutterstock