Tesla China growth continues to accelerate, driving record revenue and sales for the electric carmaker in the third quarter of 2025.
The company reported $28.1 billion in total business revenue, marking a 12 percent year-on-year increase. Free cash flow reached $4 billion, also a record high. Tesla officials emphasized that the Shanghai Gigafactory plays a central role in the company’s Asia-Pacific expansion.
According to the China Passenger Car Association, the Shanghai factory delivered more than 90,000 vehicles in September. Over 71,000 of these were sold in China, a 25 percent month-on-month increase. Overall Tesla China growth in Q3 reached nearly 170,000 units, up 31 percent from the previous quarter.
The launch of the six-seat Model Y L in China attracted strong market demand. Company executives stated that this model significantly boosted quarterly sales.
Tesla also expanded its energy storage business, deploying 12.5 gigawatt-hours of products during the quarter. CFO Vaibhav Taneja said the segment achieved record deployments, gross profit, and margins. Tesla China growth benefited from production at the Shanghai Gigafactory, meeting strong electric vehicle and energy storage demand.
Taneja explained that tariffs increasingly affect the business since all production comes from China. However, Tesla uses the Shanghai factory to supply demand outside the US, avoiding tariff penalties.
Industry analysts noted that Tesla China growth demonstrates the potential of the Chinese EV market, which continues expanding rapidly. They also emphasized that local production allows Tesla to respond quickly to market trends and reduce costs.
Looking ahead, Tesla plans to increase production at Shanghai and other factories. The company also intends to grow its energy storage business worldwide by leveraging advanced manufacturing and distribution capabilities.
Tesla China growth highlights the critical role of local production hubs in driving global expansion. Strong vehicle deliveries and energy storage deployment position the company to maintain momentum in Asia.
