Tesla Surpasses 12-Month Export Record from Giga Shanghai Plant in April
In a remarkable turn of events, Tesla's vehicle registrations in South Korea surged by an impressive 80% year-over-year by the end of 2024, with the new Model Y being a significant contributor to this growth. The demand for the new Model Y was so intense that Tesla's official website briefly crashed on launch day, and long lines formed outside showrooms as customers rushed to place their orders.
The increased shipments in April 2023 were due to global demand for the updated Model Y. This demand led Giga Shanghai, Tesla's primary export hub outside the United States, to export nearly 30,000 vehicles in April 2023, a record high for the past year. The factory, which only produces Model 3 and Model Y vehicles, delivered over 172,000 vehicles in Q1 2025, all of which were Model 3 and Model Y.
However, the current global demand for the updated Tesla Model Y has declined compared to previous years. Globally, the Model Y dropped to 5th place in sales rankings by May 2025, with a 29.6% decrease compared to earlier years. This decline is apparent in key markets such as the United States, Europe, and the Asia-Pacific region.
In China, Tesla's sales from its Chinese factory worldwide declined by about 13.7% in 2025 despite still moving over 432,000 vehicles in the first seven months. Tesla plans new versions of the Model Y in China, including a planned six-seat Model Y L and a less expensive variant without a panoramic roof and rear screen to target wider audiences.
In Australia and South Korea, while specific detailed sales numbers were not identified, the general trend suggests intensifying competition from local and Chinese EV brands is pressuring Tesla’s growth. Market observers note Tesla’s brand image challenges and its relatively minor 2025 Model Y refresh—with design updates but no major technical overhaul—have hurt consumer enthusiasm.
Europe’s Model Y sales declined by 7% in mid-2025, and the Asia-Pacific region faces similar competitive pressures from rising Chinese EV brands like BYD and MG.
Despite these challenges, Tesla remains optimistic. In a strategic move, Tesla began selling China-made vehicles in South Korea in late 2023, aiming to strengthen its foothold in the region. The company's strategy to offer a more affordable China-specific Model Y variant may help regain some market share, but competition and brand perception issues continue to pose challenges.
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- In response to the decline in global demand for the updated Model Y, Tesla is planning new versions of the Model Y, such as a six-seat Model Y L and a less expensive variant, to target wider audiences and potentially revitalize sales.
- Amidst intensifying competition from local and Chinese EV brands, Tesla's sales in Australia and South Korea are being pressured, highlighting the need for the company to consider innovative strategies, like exporting China-made vehicles, to maintain and grow its market share in these regions.
