07:34 11-11-2025

Tesla's China sales slump 35.8%; exports hit 2-year high

Tesla is facing its steepest sales slump in China in three years. According to the China Passenger Car Association (CPCA), the company sold just 26,006 electric cars in October 2025—35.8% fewer than a year earlier. It’s the weakest monthly result since 2022 and a sharp comedown from September, when Tesla cleared more than 71,000 vehicles on the back of the new Model Y L with an extended wheelbase and six seats.

The American brand’s share of China’s EV market slid to 3.2%, down from 8.7% a month earlier. At the same time, exports of China-built Teslas climbed to a two-year high of 35,491 units.

The downturn in China coincided with softer demand in Europe—Germany, Spain, the Netherlands and the Nordic countries also reported declines. On its home turf in China, Tesla is up against fierce local competition: domestic marques are packing in more technology and undercutting on price. The pattern suggests a market that now rewards rapid iteration and sharper pricing, leaving little room for brand strength alone.

Xiaomi stood out, moving a record 48,654 SU7 and YU EVs despite recent incidents that raised safety concerns. Overall vehicle sales in China also fell in October as subsidies and tax perks were rolled back, adding to Tesla’s headwinds.

Analysts say Elon Musk’s company has been pushed into a tight corner: Chinese brands are consolidating their gains, while interest in the American standard-bearer is fading faster than expected.