Shanghai-built Model 3 and Model Y exports plunge amid growing price pressure and rising domestic EV rivals.
BEIJING — Tesla’s (NASDAQ: TSLA) China-made vehicle sales fell 9.9% year-on-year in October to 61,497 units, marking a sharp reversal from September’s modest 2.8% gain, according to data from the China Passenger Car Association (CPCA) released Tuesday. The decline highlights mounting headwinds for the U.S. automaker in the world’s largest electric vehicle (EV) market.
The figures include both domestic deliveries and exports from Tesla’s Shanghai Gigafactory to markets such as Europe and India. On a month-over-month basis, Tesla’s sales of Model 3 and Model Y vehicles tumbled 32.3%, reflecting weaker overseas shipments and slowing demand amid intensifying price competition.
Tesla’s biggest Chinese rival, BYD (002594.SZ), also reported a 12% drop in global sales — its steepest fall in nearly two years — underscoring the ferocity of the EV price war sweeping China. Dozens of local brands, from Nio to Xpeng, have slashed prices and flooded the market with new models, leaving global incumbents under pressure to defend their market share.
Despite unveiling lower-cost versions of the Model Y and Model 3 last month, Tesla has yet to confirm a launch date for these models in China. The company’s decision to strip out certain premium features to achieve lower price points has sparked mixed reactions in Europe, where sales have also weakened amid an influx of budget-friendly EVs from Asian competitors.
Meanwhile, Tesla is set to showcase its long-awaited Cybercab robotaxi at an event in Shanghai on Wednesday. Analysts say the move signals Tesla’s ambition to expand into the autonomous mobility space, though it faces stiff local competition from Chinese tech players Baidu (9888.HK), Pony.ai (PONY.O), and WeRide (WRD.O) — all of which have been testing robotaxis across major Chinese cities.
While the short-term numbers point to a slowdown, industry observers note that Tesla’s long-term strategy in China may hinge less on immediate sales and more on innovation, localization, and regulatory alignment. Still, with BYD and other homegrown giants tightening their grip on the domestic EV market, Tesla’s once-commanding position in China now looks increasingly in need of a recharge.
