Tesla Inc.'s Model Y crossover SUV reclaimed its position as the best-selling vehicle in China for June, moving 38,654 units. This sales performance positions the Model Y as the top seller across all propulsion types, including internal combustion engines, EVs, and plug-in hybrids, according to data from Yiche. The achievement marks a significant turnaround for the Elon Musk-led automaker after a period of consistent sales declines and follows a 25% year-over-year surge in second-quarter deliveries.

The Model Y also secured the second-best-selling spot in China in May and previously held the top position in March 2026 with 39,827 units sold. Competitors trailed behind, with Geely Automobile Holdings Ltd.'s Galaxy Xingyuan taking second place with over 33,000 units sold. Stellantis N.V.-backed Leapmotor secured the third spot with its A10 model selling over 24,000 units.

U.S. Launch and Delivery Growth

Tesla recently launched the six-seater Model Y L in the U.S. priced at $61,990. The Premium Launch Series includes a free 12-month subscription for Supervised Full Self-Driving (FSD), a tow hitch, and 19-inch wheels. Buyers also receive 12 months of free access to the Supercharging network and PowerShare vehicle-to-grid technology. Deliveries for the all-wheel-drive vehicle, which features an 83 kWh battery pack and a range of 325 miles, are scheduled to begin in September.

Production and Delivery Breakdown

Tesla reported second-quarter vehicle deliveries of 480,126 units, a 25% increase from 384,122 vehicles delivered a year earlier. The total exceeded Street estimates of 406,000 and rose 34% from 358,023 vehicles in the first quarter. The company produced 451,758 vehicles during the quarter.

Stock Performance

Tesla shares were down 0.05% to $393.87 during the after-hours session on Wednesday. The stock had previously fallen more than 7% on the delivery beat, trading below key moving averages. Investor Gary Black of The Future Fund LLC attributed the sales surge to high gas prices rather than FSD technology impact. Tesla will post its financial results for the second quarter of 2026 after market close on Wednesday, July 22, 2026.

Tesla Inc faces a potential roadblock to its robotaxi expansion in New Jersey due to a proposed state law mandating the use of lidar and radar alongside cameras. The bill, expected to be voted on by state lawmakers later this year, would require autonomous vehicle operators to utilize multiple sensing technologies. This legislative move directly challenges Tesla CEO Elon Musk's strategy of relying exclusively on camera-based technology for his company's autonomous driving efforts.

The proposed legislation aims to establish a three-year pilot program for the testing and deployment of fully autonomous vehicles in New Jersey. Under the rules of the bill, companies would be mandated to use cameras in conjunction with other sensing technologies such as lidar or radar. Additionally, the law requires operators to complete 50,000 miles of supervised testing within the state before human safety drivers can be removed from the vehicles. Companies would also be obligated to report specific crashes to regulators.

New Jersey State Senator Andrew Zwicker, the primary sponsor of the bill and a physicist at the Princeton Plasma Physics Laboratory, emphasized that the legislation is focused on safety rather than targeting any specific manufacturer. Zwicker cited a ride in a Waymo robotaxi in Phoenix as a pivotal experience that convinced him of the potential benefits of autonomous transportation. Waymo, a unit of Alphabet Inc, utilizes lidar, radar, and cameras in its vehicles, contrasting with Tesla's approach.

Musk has long argued that cameras, powered by artificial intelligence, are superior to lidar and radar for autonomous driving. He has contended that lidar and radar can reduce safety due to sensor contention, stating last year that Tesla turned off radars to increase safety. While competitors like Waymo and Zoox employ a combination of all three sensing methods to enhance vehicle reliability, Tesla has maintained its camera-only stance to lower production costs.

The passage of the bill would force Tesla to either alter its technological approach or abandon the New Jersey market. The situation highlights the growing challenge of varying state regulations for autonomous vehicle manufacturers. Tesla once promised to have hundreds of thousands of fully self-driving vehicles on the roads by the end of 2026, a goal that remains unmet as the company currently operates unsupervised robotaxis in a limited number of states. New York is reportedly considering similar legislation, which could further complicate expansion plans for camera-only autonomous systems.