Tesla’s sales in China tumbled to 26,006 vehicles in October 2025, representing the company’s weakest monthly performance in the country in almost three years. The sharp decline reflects the mounting challenges Tesla faces as demand cools and competition intensifies across the world’s largest and most competitive electric vehicle market. Once a dominant force in China’s EV scene, Tesla is now navigating a tougher landscape — one shaped by shifting consumer preferences, price pressures, and the rapid rise of innovative local brands.
According to data from the China Passenger Car Association (CPCA), Tesla’s deliveries fell 35.8% year-on-year, down sharply from 71,525 units in September 2025 — the same month it launched the new six-seat Model YL, a longer-wheelbase version built exclusively for China.
Exports Rise as Domestic Sales Fall
While Tesla’s sales within China took a hit, its exports from Shanghai surged to a two-year high of 35,491 units in October, showing that the company is increasingly leaning on overseas demand to balance weak domestic sales.
Market Share Hits a Three-Year Low
Tesla’s share of China’s EV market fell dramatically to 3.2% in October, down from 8.7% the month before — its lowest level since 2022. The slump adds to the company’s broader challenges, following declining sales across Europe, particularly in Germany, Spain, the Netherlands, and Scandinavia, despite aggressive price cuts and production ramp-ups.
Chinese Brands on the Rise
Meanwhile, Chinese automakers continue to gain ground. Xiaomi led the charge with record monthly sales of 48,654 vehicles, driven by the strong reception of its new SU7 sedan and YU SUV. The performance came even as concerns over EV safety resurfaced following several high-profile incidents.
This shift comes at a time when overall car sales in China are softening. Weaker consumer confidence and the phaseout of government subsidies and tax incentives have further cooled demand across the electric vehicle segment.
In short, Tesla’s dominance in China is slipping, and domestic competitors — armed with fresh designs, strong pricing, and growing brand loyalty — are closing in fast.
