Stiff competition may be responsible for declining Tesla sales in the world’s largest electric vehicle market.
What’s happening?
Tesla experienced its worst month of 2025 in China, with sales down 36% year over year in October, according to Electrek. The company delivered 26,000 electric vehicles compared to more than 40,000 in October 2024.
«In terms of number of vehicles sold, it likely can only get worse,» one Electrek commenter wrote.
Per Electrek, the competitive EV market in China may be a factor in Tesla’s decline. China is the world’s largest EV market. In fact, data from the International Energy Agency showed that the country accounted for more than 70% of global EV production in 2024.
Analysts said Tesla will likely see its first full-year sales decline in China unless it posts record sales in the final two months of the year.
Why are EV sales important?
Switching to an EV can help reduce the amount of heat-trapping pollution in the air. EVs have zero tailpipe pollution, per the U.S. Environmental Protection Agency. While the planet-friendly vehicles generate energy for charging, they still have a smaller carbon footprint than their gas alternatives.
In addition to China, Tesla’s sales have declined in other markets. There has been a significant drop in sales for the automaker in several key markets in Europe. However, research found that overall global EV sales spiked by 23% in October, per Reuters.
Despite declining Tesla numbers, Teslarati reported that the Model Y and Model 3 are still the world’s best-selling EVs. According to Reuters, the automaker debuted more affordable versions of the vehicles in October — a good sign for car buyers as higher prices make EV ownership less accessible.
What’s being done about EV sales?
The demand for planet-friendly vehicles remains on an upward trend. The World Economic Forum anticipated EVs to account for 25% of global car sales in 2025.
Cost continues to be a major factor in boosting EV sales. Tesla competitors, like Chinese automaker BYD, gained momentum over the past year thanks to affordable prices.
While the U.S. tax credit expired at the end of September, many EV drivers can still take advantage of incentives at the state level. Texas, Tesla’s home base, launched a new program that provides a $2,500 grant for qualifying EVs. Similar incentives are also offered in Colorado and Illinois.
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