After setting records for electric vehicle sales in the third quarter, Tesla Inc (NASDAQ:TSLA) has more bad news when it comes to demand to start the fourth quarter.
A new report shows a sharp decline in vehicle sales in China.
Tesla Sales Hit Three-Year Low In China
Tesla sales in China totaled around 26,000 in October, down 36% year over year.
The total marks the worst month of 2025 for Tesla in China and the company’s worst month in three years. The monthly total was even worse than when Tesla’s transition to production of the Model Y refresh, as reported by Electrek.
Tesla’s year-to-date deliveries in China are now down around 40,000 vehicles in 2025. The electric vehicle giant would need to report record sales in November and December to avoid having its first full-year decline in China on a year-over-year basis.
China is Tesla’s second-largest market, trailing only the U.S.
The bad news for Tesla follows a strong third quarter and September, which saw 71,525 deliveries in China.
Data shows that Tesla’s total deliveries in China, including exports, totaled 61,497 vehicles in October, down 9.9% year-over-year. The company’s China Gigafactory produces cars that are exported to countries like India.
Read Also: Tesla Operates In Five Continents, A Sixth Could Be On The Way With This Country
Bad News for Tesla Demand
The news out of China follows bad news for Tesla in Europe, where early registration data showed nine key European countries down 36.3% year-over-year in October.
The report showed year-over-year declines of 50% or more in five of the nine countries tracked, with only France showing a year-over-year increase during the month. France could be an outlier, offering incentives for low- and middle-income people to buy electric vehicles.
In total, 4,710 units were registered in October across the nine countries.
Overall, Tesla registrations are down over 30% year-to-date across Europe to around 177,000, versus 255,000 units over the same period last year.
After setting records in the third quarter overall and in the U.S. market, Tesla could be in for a rough fourth quarter.
Demand in the U.S. was supported by the expiration of the Federal EV tax credit on Sept. 30. With the credit gone, consumers may choose not to purchase electric vehicles until more incentives return or prices come down overall.
In Europe and China, Tesla is facing increased competition from Chinese automakers, which offer vehicles with lower starting prices.
Tesla Shares Fall
Tesla stock is down 1.9% to $436.82 on Tuesday versus a 52-week trading range of $214.25 to $488.54. Tesla shares are up 15.2% year-to-date in 2025.
Read Next:
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
