Tesla has hit a troubling milestone in China, with October 2025 marking its lowest monthly sales in three years.
The American electric vehicle giant sold just 26,006 units, a staggering 35.8% (approx’) drop compared to the same month last year.
This slump follows a brief surge in September 2025, when Tesla launched the Model Y L—a longer-wheelbase, six-seat version tailored for Chinese consumers.
Despite initial enthusiasm, the momentum quickly faded as domestic rivals ramped up their offerings. Xiaomi, for instance, recorded 48,654 EV sales in October 2025, outpacing Tesla and highlighting the growing strength of local brands.
Tesla’s market share in China’s EV sector shrank to around 3.2%, down from 8.7% the previous month, underscoring the brand’s struggle to maintain relevance in the world’s most competitive electric vehicle market.
Broader economic factors also played a role, with overall car sales in China declining amid reduced government subsidies and waning consumer confidence.
While Tesla’s exports from China rose to a two-year high, the domestic downturn signals a strategic challenge.
As local manufacturers innovate rapidly and offer aggressive pricing, Tesla will likely rethink its approach to regain traction in a market that once promised boundless growth.