In the January-July period, China sold 500,740 vehicles, surpassing the 500,000 mark, albeit down 7.41 percent year-on-year.

Tesla's (NASDAQ: TSLA) sales of China-made vehicles recovered last month, albeit modestly.

Tesla China sold 74,117 vehicles in July, including those sold in China and those exported from China to overseas markets, according to data released today by the China Passenger Car Association (CPCA).

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That's up 4.38 percent from 71,007 in June and up 15.29 percent from 64,285 in the same period last year.

In the January-July period, Tesla China sold 500,740 vehicles, surpassing the 500,000 mark, albeit down 7.41 percent year-on-year.

Tesla has a factory in Shanghai that produces the Model 3sedan and Model Y crossover, delivering both to local customers and serving as an export hub for it.

Tesla's pattern is to produce cars for export in the first half of the quarter and for the local market in the second half, it previously said.

Figures for Tesla's July sales in China and vehicles exported from its Shanghai factory are not yet available.

China's wholesale sales of new energy vehicles (NEVs), which include plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), were estimated at 950,000 units in July, up 29 percent year-on-year butdown 3 percent from June, according to the CPCA.

This means that Tesla China contributed about 7.8 percent of China's wholesale NEV sales in July.

Tesla only makes BEVs, while some Chinese NEV makers, including (HKG: 1211, OTCMKTS: BYDDY) and (NASDAQ: LI), make both PHEVs and BEVs.

On May 24, Reuters reported that Tesla's Shanghai factory planned to cut Model Y production by at least 20 percent between March and June.

It's not clear if the production cuts would extend into the second half of this year or the Model 3, the report noted.

Tesla has not commented on the report, but according to a July 17 story in The Beijing News, their reporters saw Tesla's Shanghai factory running at full capacity during a July 15 site visit.

While Tesla did not disclose the number of orders, its production line was averaging about one new Model Y rolling off the line every 30 seconds, according to the report.

Tesla expects FSD approval in China by year-end