A Tesla Model Y is on display in a showroom of the U.S. electric-vehicle maker in Shanghai’s Jing’an District, eastern China, on March 11, 2025. Photo by Hector Retamal/AFP/Getty Images
In October, Tesla’s sales in China fell to 26,006 units – the lowest figure in three years amid weak demand in the highly competitive electric-vehicle market.
Year-over-year volumes declined by 35.8%, while September saw 71,525 units, when the company began deliveries of the Model Y L – the long-wheelbase, six-seat version, previously available only in China.
Exports of cars manufactured in China rose to a two-year high – 35,491 units in the past month, according to CPCA.
Tesla’s share of the Chinese electric-vehicle market fell to 3.2% in October, significantly below the previous month’s 8.7% and the lowest level in more than three years.
The drop in performance on the world’s largest automotive market comes amid weak demand in Europe last month, notably in Germany, Spain, the Netherlands and Northern Europe, underscoring ongoing difficulties on the continent.
The company is facing mounting pressure in China – the second-largest market after the United States, in the third quarter.
Xiaomi 1810.HK, whose lineup includes the SU7 sedan and the YU7 SUV, posted record sales last month – 48,654 units, while incidents involving its sedans stirred discussion about electric-vehicle safety.
Total passenger-car sales in China in October fell as expected due to softer consumer sentiment and the reduction of government subsidies and tax incentives.
Context and Outlook for the Market
Weakening demand and intensified competition in China highlight the challenges for the American electric-vehicle maker on one of the world’s key markets.
