Tesla to ramp up production at its Shanghai Gigafactory in Q4

Q4 production ramp-up begins

Tesla’s Shanghai Gigafactory started ramping up vehicle production for the fourth quarter of 2025. This significant effort is underway to meet the anticipated high demand across the Asia-Pacific markets. The factory’s Q3 output of 241,890 vehicles was about 48.7% of Tesla’s worldwide total.

The facility’s increased production is key to maintaining market share against strong local electric vehicle competitors. The Q4 performance is crucial because the Shanghai Gigafactory accounts for nearly half of the company’s global output.

Shanghai factory Q3 production

The Shanghai Gigafactory produced a total of 241,890 vehicles in the third quarter of 2025. This total was a significant 26.17% increase from the production volume in the second quarter of the year.

The factory’s production helped Tesla achieve a global delivery record of 497,099 vehicles. The Q3 total of 241,890 units was a new high for 2025 at the Shanghai plant. The factory’s highest single month of output for the year was in September, when it reached 90,812 wholesale shipments.

September China wholesale volume

Total wholesale volume from the Shanghai Gigafactory in September 2025 was 90,812 vehicles. This number represents the combined total of cars sold to Chinese buyers and vehicles exported internationally. This volume was a substantial 9.16% increase compared to the factory’s August wholesale volume of 83,192 units.

The 90,812 volume for September was a 2.82% year-over-year increase compared to the September 2024 total of 88,321 units. This performance stopped a two-month trend of year-over-year declines in wholesale volume.

Q3 2025 global deliveries

Tesla delivered a world record total of 497,099 electric vehicles globally in the third quarter of 2025. The majority of these deliveries, or 481,166 units, were the Model 3 and Model Y.

These deliveries surpassed the previous quarterly record of 479,700 units set in Q2 2025. The total number of vehicles produced worldwide for Q3 2025 was 447,450 units. The 497,099 delivery volume meant Tesla used inventory vehicles to complete 49,649 deliveries for the quarter.

Impact of the Model Y L launch

The launch of the new six-seat Model Y L in August 2025 helped drive sales figures at the Shanghai factory. The latest variant has a more extended range than the standard Model Y, measured at 751 kilometers on the CLTC standard.

The Model Y L version starts at 339,000 RMB (Yuan) in China. This price is 28.69% higher than the base Model Y Rear-Wheel Drive model, which starts at 263,500 RMB.

China domestic sales vs. exports

Tesla’s total wholesale volume for September, at 90,812 vehicles, was split into two parts. Domestic retail sales to customers in China made up 71,525 units. The other 19,287 cars were exported to overseas markets from the Shanghai facility.

The number of exports in September increased by 19.6% compared to the total of 16,126 units in September of the previous year. The strategy prioritizes exports at the start of a quarter and domestic sales at the end.

Retail sales recovery in China

Domestic retail sales in China reached 71,525 vehicles in September 2025. This was the second-best monthly sales total for Tesla in China for the entire year. This sales total marked a significant 25% jump from the 57,220 units sold domestically in August.

Despite this strong comeback, the 71,525 retail total was 0.93% lower than the domestic retail volume of 72,196 units from September 2024. The top monthly retail sales figure for 2025 remains at 74,127 units, as of March.

Model-specific sales performance

The Model Y crossover was the best-selling vehicle in China during September 2025, with 59,907 wholesale units sold. This number was a 17.1% increase compared to the 51,160 wholesale units sold in September of the previous year.

The Model 3 sedan accounted for 30,905 wholesale units in September, representing a 16.8% decrease from the 37,144 units sold in September 2024. However, the Model 3 saw a 27.01% increase month-over-month from its August total of 24,332 units.

Third quarter China total

Tesla sold a total of 241,890 China-made vehicles during the third quarter of 2025. This volume was a 2.91% decrease compared to the 249,158 cars sold in the third quarter of 2024. This marked the second consecutive quarter to show a year-on-year sales decline.

The Q3 total of 241,890 vehicles showed a strong 26.17% recovery when compared to the 191,791 units sold in the second quarter of 2025. This figure remains a positive signal for an upward sales trend in China.

Year-to-date performance

From January through September 2025, the Shanghai Gigafactory delivered a cumulative 606,364 vehicles. This nine-month total represents a 10.27% decrease compared to the 675,541 units delivered during the same period in 2024.

Year-to-date domestic retail sales in China stood at 432,704 units by the end of September. This number represented a 5.97% decline from the 459,144 domestic retail units sold in the first nine months of the previous year.

Market share numbers

Tesla’s market share in China’s New Energy Vehicle (NEV) segment reached 5.52% in September 2025. This figure represents a small gain, demonstrating resilience despite high market competition from local brands. The company’s share of the Battery Electric Vehicle (BEV) segment climbed to 8.66%.

These market shares are considered modest in the Chinese market, which has over 100 active EV brands. The 5.52% share for the NEV segment is expected to grow further with the Q4 production ramp-up.

Historical September sales comparison

The 90,812 vehicles delivered by the Shanghai Gigafactory in September 2025 were its best monthly output for the year. However, this volume was 3.15% below the factory’s highest monthly record of 93,766 units, set in December 2024.

The 2.82% year-on-year increase in wholesale sales for September broke a prior two-month pattern. The Model Y L helped push sales up, creating immediate momentum after the vehicle’s late-August launch.

Export cycling strategy

Tesla’s Shanghai Gigafactory follows a production cycle that prioritizes exports early in each quarter. The factory then focuses on domestic deliveries in the final month, typically September. Shanghai is the central export hub for over 20 countries in the Asia-Pacific region.

In August 2025, exports made up approximately 31.30% of the total 83,192 vehicles shipped from Shanghai. The export share is expected to increase again in October as the Q4 cycle begins its new monthly phase.

Model Y L sales momentum

Local media reported high early interest in the six-seat Model Y L, citing as many as 120,000 orders in the first two weeks, a figure Tesla has not confirmed. This high order rate averaged nearly 8,571 orders per day shortly after the August 2025 unveiling.

The Model Y L accounted for about 20% of Tesla’s weekly sales in China during the last week of September. However, Tesla has not officially confirmed the total of 120,000. The first Model Y L deliveries began in early September.

Price and vehicle range

The new Model Y L has an official long-range rating of 751 kilometers under the CLTC standard in China. This range is one of the longest for a family-sized electric SUV in the local market.

Its starting price of 339,000 RMB is 75,500 RMB more than the base model. Chinese regulatory filings indicate a longer-range Model Y variant (sometimes referred to locally as ‘Model Y+’); Tesla hasn’t disclosed official specifications, such as CLTC range.

Want to see how Tesla’s next phase could reshape Europe’s auto scene? Read more in Tesla plans to expand EV manufacturing across Europe.

End-of-quarter rally

Tesla finished the third quarter with its strongest week of sales in China, registering 19,300 insured units from September 22 to 28. This number was an 11.9% increase from the 17,300 units registered the week before.

The strong final week resulted in a total of 66,250 registrations for the last four weeks of September. Despite the rally, the Q3 registrations were 8.7% lower than the 72,568 units registered in the same quarter of the previous year.

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What do you think about Tesla’s production push this quarter? Share your thoughts below.

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This slideshow was made with AI assistance and human editing.