TLDRs;
- Tesla’s Shanghai Gigafactory hit a 2025 monthly record with 90,812 deliveries, driven by increased exports to Asia.
- September deliveries rose 9.2% from August and 2.8% year-on-year, despite stiff local EV competition.
- The new six-seat Model Y L drew over 120,000 orders in two weeks, targeting affluent Chinese families.
- Tesla expanded into the Middle East, launching the Cybertruck in Qatar after Saudi and UAE debuts.
Tesla’s Shanghai Gigafactory recorded a strong rebound in September 2025, delivering 90,812 vehicles, marking its highest monthly output this year, according to the China Passenger Car Association (CPCA).
The figure represents a 9.2% rise from August and a 2.8% increase year-on-year, reaffirming Shanghai’s role as Tesla’s largest manufacturing hub worldwide.
The factory’s record performance underscores Tesla’s continued ability to maintain output despite fierce competition and softer consumer sentiment in China’s electric vehicle (EV) market. Analysts say the higher September tally largely reflects increased exports to Japan and other Asian markets, rather than a pure domestic recovery.
Exports Drive the September Surge
Industry observers note that Tesla’s wholesale figures combine both mainland sales and export shipments, blurring the signal for true local demand. In August, Tesla registered 57,152 domestic sales and exported 26,040 vehicles, meaning nearly one-third of Shanghai’s production was shipped overseas.
The CPCA has yet to publish the September breakdown, but insiders suggest a similar export-heavy pattern. The factory’s increased shipments likely helped smooth Tesla’s global supply chain, balancing softer demand in China with stronger momentum abroad.
“Tesla appears to be leveraging its Shanghai facility as a key export hub for Asia,” one market analyst said. “This strategy helps the company sustain overall volume while navigating intense local competition.”
Model Y L Targets Affluent Families
Fueling some of the new demand is Tesla’s six-seat Model Y L, launched in September. Priced at 339,000 yuan (about $46,800), roughly 30% higher than the standard version, the Model Y L offers an extended 751 km range and a longer 3.04-meter wheelbase.
The model is clearly aimed at China’s multi-child, upper-middle-class families seeking both comfort and practicality. Local reports indicate the vehicle drew more than 120,000 orders within two weeks of its debut, averaging nearly 10,000 a day.
The rollout of the Model Y L has also opened opportunities for software and in-car service companies, as Tesla integrates new infotainment features, content localization, and navigation apps tailored for large families.
Tesla Expands Beyond China
While Shanghai continues to anchor Tesla’s manufacturing network, the company is also broadening its global footprint. Earlier this month, Tesla began selling its Cybertruck in Qatar, marking a deeper expansion into the Middle East. This follows its Saudi Arabia debut in April and existing presence in the United Arab Emirates since 2017.
The move highlights Tesla’s intent to diversify geographically amid rising Chinese competition from brands like BYD, Zeekr, and Li Auto, as well as global rivals such as Lucid, which has backing from Saudi Arabia’s Public Investment Fund.
With exports growing and regional launches accelerating, Tesla appears to be pursuing a two-pronged strategy, strengthening its export operations through Shanghai while testing demand in emerging EV markets beyond its core territories.
