Tesla vehicle insurance registrations in China dived last week just prior to the U.S. and China agreeing to temporarily slash tariffs with President Donald Trump's tariffs of 145% on China dropping to 30%. TSLA shares edged higher early Tuesday, extending a recent run.
Tesla insurance registrations in China totaled around 3,070 for the week of May 5-11, down about 58% from 7,290 the previous week and marking a 69% decline compared to a year ago, according to data compiled by independent China auto industry trackers. That's the lowest weekly reading since January.
With six weeks done in the second quarter, Tesla vehicle insurance registrations in China, a rough gauge for deliveries, are now down more than 15% vs. the Q1 pace and off 25% vs. a year ago. So far in 2025, Tesla vehicle registrations are now down 5.5%.
Tesla China was one of the few bright spots for the U.S. EV giant in Q1. Beginning in the last week of February into early March, Tesla China insurance registrations increased each week, reflecting demand for the refreshed Model Y.
However, that fortune appears to have reversed. Tesla sold 28,731 vehicles in China's domestic market in April, down 8.6% from 31,421 a year ago and down 61% from 74,127 in March 2025, according to data compiled by CnEVPost.
Tariff's Reduced
The low numbers reported Tuesday follow the announcement that the U.S. and China will reduce tariff rates on each other for 90 days in a dramatic de-escalation of a trade war between the world's two largest economies. The U.S. will cut the 145% Trump tariff on most Chinese imports to 30% by May 14, including a 20% tariff tied to fentanyl. China will cut its 125% tariff on U.S. goods to 10%. The U.S. tariff cuts don't apply to the Trump tariffs on steel, aluminum and more.
Currently, analysts expect global Tesla vehicle deliveries to decline 2.6% to 1.74 million in 2025, according to FactSet. For Q2, the analyst consensus also pegs vehicle sales declining 6.5% to 415,000. However, that would mark a 23% rebound from the disappointing total in Q1.
Some more recent estimates suggest Tesla deliveries might struggle to reach 375,000 in Q2. Tesla has already introduced cheap financing for the new Model Y in China and the U.S.
Tesla Stock Performance
TSLA advanced nearly 5% to 334.07 during Tuesday's stock market action. That's after soaring 6.8% to 318.38 Monday on the announcement of a trade deal between the U.S. and China.
Tesla stock popped 4.7% to 298.26 during Friday's stock market, advancing above the 200-day moving average and offering investors an aggressive entry.
Aside from broad market optimism about Trump's China deal, investors are bullish on Tesla's self-driving efforts, with an Austin robotaxi launch set for next month.
However, Tesla stock is still down about 21% this year as of Monday's close, even as it has surged as the general analyst consensus was positive coming out of the Q1 conference call. There is also still significant overhead, with shares down about 35% from its 488.54 peak on Dec. 18.
Trump's Auto Tariffs Are Here. What Is Next For The U.S. Auto Industry?
Tesla stock has a 21-day average true range of 5.83%. The ATR metric is available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Tesla stock has a 74 Composite Rating out of a best-possible 99. Shares also have a 92 Relative Strength Rating and a 59 EPS Rating.
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