Tesla delivered 93,579 vehicles from its China operations in July, a number that looks particularly impressive when you consider the company managed only about 67,886 units in July 2025. That’s roughly a 38% year-over-year jump.
The figures, tracked by the China Passenger Car Association (CPCA), cover China-made Model 3 and Model Y units rolling out of the Shanghai Gigafactory.
Shanghai’s factory continues to punch above its weight
The Shanghai Gigafactory has been Tesla’s most important production asset since it began churning out vehicles in late 2019. It accounts for over half of the company’s global vehicle production, serving both the massive Chinese domestic market and export demand across Asia and Europe.
It was Tesla’s first wholly foreign-owned car factory in China. Historical data had shown July deliveries declining by around 8.4% in recent years. This month’s results break that pattern decisively.
The Bitcoin angle investors keep forgetting about
As of mid-2026, Tesla holds 11,509 BTC on its balance sheet. The company reported no Bitcoin sales during Q2 2026, maintaining its position as a long-term holder. But holding isn’t free. Tesla booked $112 million in unrealized impairment losses tied to Bitcoin price fluctuations during that same quarter.
The elephant in the room: could Tesla leave China?
Tesla is reportedly contemplating a strategic review of its China business, with discussions that could include potential separation or even sale of its operations there.
Any structural change to Tesla’s China presence would be seismic. The Shanghai Gigafactory isn’t just important, it’s foundational. Separating or selling it would fundamentally alter Tesla’s production economics, its supply chain, and its ability to compete in the world’s largest EV market.
Investors watching Tesla should track three things over the coming months: whether these delivery numbers represent a sustained recovery or a one-month blip, how the strategic review of China operations unfolds, and whether that $112 million Bitcoin impairment grows or reverses depending on crypto market conditions.