Tesla is facing a noticeable slowdown in China, one of the world’s most competitive electric vehicle markets, reports GuruFocus.
After months of strong growth, the U.S. automaker sold just over 61,000 cars built at its Shanghai factory in October, a nearly 10% drop from the same time last year. The slowdown highlights just how crowded China’s EV market has become, as buyers are increasingly turning to local alternatives.
«They are not buying American products,» one commenter noted, as Tesla contends with both price wars and a flood of budget EVs from newer brands.
What’s happening?
Production and exports from Tesla’s Shanghai plant — which manufactures Model 3s and Model Ys for China, Europe, India, and other markets — fell more than 30% from the previous month.
This decline erased the modest sales gains Tesla saw in September. Local rival BYD also experienced a downturn, with global sales dropping 12% in October, marking its steepest decline in nearly two years.
The slowdown comes as Tesla has yet to introduce cheaper versions of the Model 3 and Model Y in China, models that recently launched in Europe. Analysts say releasing these lower-cost vehicles could be critical to regaining momentum in the coming months.
Meanwhile, Tesla is showcasing its long-awaited Cybercab Robotaxi in Shanghai, though it remains unclear when — or if — it will begin operating on Chinese roads, whereas competitors like Baidu and Pony.ai are already testing autonomous fleets.
Why is this concerning?
For consumers, Tesla’s slowdown could mean fewer choices and longer wait times.
Limited production and delayed launches of more affordable models may make EVs less accessible for middle-class buyers, pushing some to consider rival brands. Higher prices or restricted availability could also slow the broader adoption of electric vehicles in China, with implications for environmental goals aimed at reducing transportation pollution.
What’s being done?
Tesla is expected to introduce its more affordable Model 3 and Model Y in China soon, a move that could make EV ownership even more attainable for consumers and help the company regain its competitive edge.
In the meantime, the company continues to innovate, showcasing its Robotaxi as a potential next step in autonomous transportation. Investors and consumers are watching closely to see whether these new offerings can restore growth in a fiercely competitive market.
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