After eight consecutive months of declining sales, Tesla posted a modest increase in electric vehicle (EV) deliveries in China for June. This upward shift, though slight, could signal a turning point for the American automaker as it faces intensifying competition from local EV manufacturers. While the rebound is still early-stage, it offers a potential indication that demand for Tesla vehicles in the world’s largest EV market may be stabilizing.

First Monthly Increase Since October

According to China’s Passenger Car Association, Tesla sold 71,599 Shanghai-made vehicles in June, a 0.8% increase year-over-year and a notable 16.1% rise compared to May. This marked the first monthly gain since October 2024, suggesting a potential bottoming-out of the negative trend. Although a single month doesn’t confirm a long-term reversal, it offers some breathing room for Tesla amid growing market pressure.

Quarterly Decline Still Weighs on Performance

Despite June’s positive figure, Tesla’s overall Q2 performance in China remained underwhelming. The company delivered approximately 205,517 vehicles in the second quarter, reflecting a 6.8% decline compared to Q2 2024. That drop also follows a weaker Q1, underscoring broader concerns about Tesla’s momentum in the Chinese market. The year-over-year contraction highlights the impact of rising local competition and shifting consumer preferences.