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Tesla China sales rise 30% in May, definitively debunks reports of weak demand

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Tesla’s May numbers from China are in, and they hint at a sustained demand for the company’s mass-market vehicles. Last month, Tesla China sold a total of 33,463 vehicles comprised of 21,936 units for the local market and 11,527 that were exported to foreign territories. The data was released recently by the Chinese Passenger Car Association (CPCA).

Considering the company’s rather conservative numbers in April — part of which was due to a reported shutdown of the Model Y line in Gigafactory Shanghai — May’s figures represented a massive month-over-month increase. Tesla’s overall net orders increased 30% MoM compared to April, while the company’s domestic sales saw a notable 89% MoM rise. This is quite impressive, exceeding even the estimates of some respected TSLA bulls. 

Just last week, The Information, citing a single, unnamed source reportedly familiar with the EV maker’s sales, reported that Tesla China’s net orders dropped to only about 9,800 in May, a 50% decline. This sent TSLA stock dropping over 5% as bears once more alleged that Tesla’s demand in China was growing weak. Tesla’s May numbers definitively prove these reports are undeniably false. 

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Tesla China has so far been involved in a PR crisis that included rumors of brake failures, among others. Fortunately, Tesla China’s legal department has taken an assertive stance against the misinformation, resulting in several media outlets and social media influencers openly admitting to fabricating negative reports about the EV maker. 

Gigafactory Shanghai, where Tesla produces its locally-made vehicles, is expected to have the capacity to produce around 500,000 cars every year. With Model Y production still ramping up, there is still a lot of space for the company to increase its output. Tesla China may also see more tailwinds in the near future, particularly as the company is reportedly looking to unveil an affordable, $25,000 car for the local market. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla owner-investor buys Model Y after receiving Nazi-themed mail

The Tesla investor even made it a point to purchase the brightest shade available for her new Model Y.

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Credit: Tesla

A TSLA investor has decided to purchase her fifth Tesla after receiving a threatening, Nazi-themed card at her home.

The Tesla investor even made it a point to purchase the brightest shade available for her new Model Y—Ultra Red.

Responding with a New Tesla

As per 58-year-old Alexandra Merz, an investment analyst and immigration consultant who immigrated from Germany to the United States, she received mail from a Boston address to her home on April 17. Upon opening the letter, she was greeted by an image of the Tesla logo incorporated with a Nazi salute.

Inside the card was a handwritten message which read “History has its eyes on you.” Merz promptly reported the message to the FBI. In a comment to the New York Post, she stated that she is now even more motivated to support Elon Musk and his ventures.

“This atrocious behavior motivates me even more to stand up for Tesla, Elon, and DOGE,” Merz noted. “I bought our fifth Tesla last Saturday, a beautiful red Model Y, the best car out there. And it drives itself.”

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An Unfortunate Trend

In previous comments, Merz expressed her disdain for the ongoing attacks against Tesla and Musk. “Tesla is employing more than 140,000 employees worldwide, building the most American cars in the U.S., and building the European Model Ys in Berlin. I often wonder whether these protesters have thought through what they are doing,” she stated.

Elon Musk himself admitted to the disturbing trend during Tesla’s Q1 2025 earnings call, stating that “there’s been some blowback for the time that I’ve been spending in government with the Department of Government Efficiency or DOGE.” The CEO also stated that he would soon be stepping back from DOGE’s everyday operations and focusing more of his time on Tesla.

U.S. President Donald Trump also addressed the ongoing attacks on Teslas in a comment about Musk’s impeding step back from DOGE. As per Trump, people against Musk are taking out their frustrations on Tesla and its owners, which is unfair. He also described the people behind the attacks on Tesla as “sick.”

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Trump’s tariff exemptions for car parts bring mixed relief to automakers  

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(Credit: Gage Skidmore, CC BY-SA 3.0 <, via Wikimedia Commons)

U.S. President Donald Trump is expected to grant tariff exemptions for car parts, offering partial relief to automakers amid intense industry lobbying. Trump’s tariff exemptions aim to ease the burden of trade policies disrupting the auto sector.

The expected tariff exemptions will spare car parts from duties targeting Chinese imports and those on steel and aluminum, per two sources familiar with the matter. Sources called the strategy a “destacking” of tariffs. The 25% tariff on foreign-made cars, already in effect, and a 25% duty on imported car parts, set for May 3, will remain.

The Center for Automotive Research estimated that Trump’s 25% tariffs on automotive imports will inflate automakers’ costs by $108 billion in 2025, threatening profitability and supply chains. Automakers are clambering to comply with Trump’s auto tariffs while maintaining car prices, or at least keeping prices reasonable. However, the tariffs threaten to unravel the auto industry, affecting automakers, parts suppliers, and long-established supply chains.

Tesla has quickly adjusted to Trump’s auto tariffs, suspending plans to ship components from China for its Cybercab and Semi electric trucks to the U.S. Similarly, Ford halted shipments of select vehicles to China, facing retaliatory tariffs as high as 150%, which have severely impacted its export strategy.

The partial exemptions offer a reprieve for automakers reliant on global supply chains, but the persistent 25% tariffs on cars and auto parts continue to challenge cost structures. As U.S. automakers navigate these trade hurdles, the exemptions could stabilize some operations, though rising car prices and supply chain disruptions remain significant concerns for the industry’s outlook in 2025.

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Donald Trump shares thoughts on Elon Musk’s DOGE step back

The U.S. President also noted that Musk is a great patriot, and that the people who attack Teslas are “sick.”

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Credit: Elon Musk/X

During Tesla’s first quarter earnings call, CEO Elon Musk announced that starting in May, he would be stepping back from the Department of Government Efficiency’s (DOGE) daily operations. 

Musk’s comments were received positively by TSLA investors, resulting in the company’s stock rising despite Tesla missing Q1 expectations.

Musk’s Comments

In his opening remarks at the Tesla Q1 2025 earnings call, Musk acknowledged that there has been some blowback to Tesla due to his activities at DOGE. And while he believes that the protests against Tesla are very organized and likely paid for, he also noted that it is time for him to allocate more of his time to Tesla. 

“Starting probably next month, May, my time allocation to DOGE will drop significantly… I’ll be allocating probably more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done,” Musk noted.

Trump’s Response

Considering Musk’s comments, it was no surprise that United States President Donald Trump was asked about the CEO’s impending step back from DOGE. Trump stated that he “can’t speak more highly about any individual,” and that Elon Musk has contributed a lot to the administration due to his work with DOGE. The president highlighted, however, that the backlash against Tesla has been extremely unfair. 

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“I also know that he was treated very unfairly by the, I guess he called the public, by some of the public, not by all of it. He makes an incredible car. Everything he does is good, but they took it out on Tesla, and I just thought it was so unfair, because he’s trying to help the country, but he has helped the country,” Trump stated.

The U.S. President also noted that Musk is a great patriot, and that the people who attack Teslas are “sick.” Trump also praised Elon Musk’s initiatives, stating that all the CEO’s projects are great, from Starlink to Neuralink to SpaceX to Tesla.

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