Tesla Shanghai Plant Hits Record July Sales Amid China Slump
Tesla recorded its highest ever July sales at its Shanghai plant, though domestic Chinese demand continues to decline for a fifth consecutive quarter.
The Shanghai plant of Tesla recorded 93,579 wholesale electric vehicle sales in July 2026, a 37.85% increase over the previous year and the highest July total in the company's history. Year-to-date wholesale volume reached 561,528 units, marking a 29.88% increase compared to 2025.
Growth is primarily fueled by exports, which surpassed domestic deliveries for the first time in a single quarter during Q2. However, domestic demand within China has fallen for five consecutive quarters, and Model 3 volumes decreased by 27.72% in the first half of the year. Tesla faces stiff competition from local manufacturers, with BYD reporting 419,211 units in July and Leapmotor exceeding Tesla China's monthly tally for two consecutive months.
Amid these market shifts, CEO Elon Musk denied reports that Tesla was considering a sale or spinoff of its China business to facilitate a merger with SpaceX, characterizing the claims as "absurdly fake news."
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