Tesla sales in China plummet – worst performance in years
By ForGeeks
Tesla is facing serious difficulties in the Chinese market, with the company’s sales in the country collapsing to their lowest level in years in October. Despite growth in the overall electric car market, the U.S. manufacturer has been among the laggards. In October, Tesla sold just over 26,000 cars in China — 36% less than in the same month last year, when sales exceeded 40,000 cars.
Tesla’s sales in China were just over 26,000 cars — 36% less than in the same month last year, when sales exceeded 40,000 cars.
Tesla’s problems in China are systemic. Since the beginning of the year, the company has sold 40,000 fewer cars than it did in the same period in 2024. In the first ten months of 2025, Tesla’s total retail sales in China totaled 458,710 units — a drop of 8.38% year-over-year. The company now faces two consecutive record months — November and December — to avoid the first-ever annualized sales decline in the world’s largest electric vehicle market.
The main source of the decline — the Model Y, previously Tesla’s most popular model in China. In October, its sales totaled just 19,488 vehicles — the lowest since March. That’s a 46% drop from a year ago and nearly 62% less than in September. Since the beginning of the year, the Model Y has sold 312,331 units, down 16.5 percent from a year ago. A bet on a refreshed version of the Model Y and a new Model YL variant didn’t produce the expected results.
On the bright side, however, despite a downturn in domestic demand, Model Y exports from the Shanghai plant rose in October to 19,074 vehicles — 214% more than last year and 118% higher than September’s figures. For the ten-month period, Model Y exports rose 41% to 104,898 units.
With the Model 3, the situation is the opposite. In October, sales of the sedan in China rose to 6,518 units — 52% more than a year earlier, breaking a five-month decline. However, that result is still 68% below September sales. For the year as a whole, the Model 3 is showing growth, with 146,379 vehicles sold, up 15% from a year ago.
Model 3 exports, on the other hand, are down. In October, 16,417 cars were shipped overseas — 24.5% fewer than a year earlier. Since the beginning of the year, exports have fallen 38% to 104,253 cars. Thus, Tesla’s Shanghai plant finds itself in a dual position: the Model Y is selling strongly abroad but going badly in China, while the Model 3 — is the opposite.
The Model Y is selling strongly abroad but going badly in China, while the Model 3 — is going badly in China.
Together, taking into account both exports and local sales, Tesla’s results in China are down 10% year-on-year. If the trend continues, this will mark the second consecutive year of declining performance. The company appears to have reached a plateau, and while it’s been slow to launch more affordable models, Chinese competitors are aggressively taking market share, leaving Tesla behind.
