Tesla’s electric vehicle sales from China dropped 9.9% year-on-year in October, totaling 61,497 units, according to data released by the China Passenger Car Association (CPCA). The decline comes after a slight 2.8% increase in September, highlighting the challenges Tesla faces in maintaining momentum in the competitive Chinese electric vehicle (EV) market.
The U.S. automaker’s Shanghai “gigafactory,” which produces Model 3 and Model Y vehicles for both domestic use and export to regions like Europe and India, saw a steep 32.3% drop in sales compared to September. Despite being a key production hub, the plant’s output slowdown reflects reduced demand amid rising competition and price pressures.
Meanwhile, Tesla’s main rival, BYD, also reported a 12% decline in global vehicle sales in October — marking its sharpest fall in nearly two years. Analysts attribute the dip to aggressive price wars and an oversaturated EV market in China.
Tesla has yet to confirm when it will launch the more affordable versions of its Model Y SUVs and Model 3 sedans in China. These lower-cost variants, introduced last month, aim to attract budget-conscious buyers by removing some premium features.
However, despite a rapid rollout across Europe, Tesla has faced decreasing sales in several countries, suggesting that competition from low-cost EV brands remains a major hurdle.
In contrast, BYD continues to expand strongly in European markets, even as its domestic sales slow down.
Adding to its innovation drive, Tesla is preparing to showcase its Cybercab — a futuristic robotaxi concept — at an upcoming Shanghai event.
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While details remain scarce, it is still unclear whether Tesla plans to test or launch its autonomous vehicles in China, where companies like Baidu, Pony.ai, and WeRide have already begun pilot robotaxi programs.
