Tesla sales sink in China as domestic competition ramps up

(Sharecast News) - Monthly sales of Tesla vehicles across China sank to their lowest level in three years in October as heightened competition among domestic EV makers continued to sap demand for the American brand. Chinese sales totalled just 26,006 last month, down 35.8% on October 2024, and 63.6% below the 71,525 delivered in September when Tesla launched its Model Y L across the country.

As a result, Tesla's market share of all Chinese EVs sold fell to just 3.2% last month, down from 8.7% in September.

The sales slump came despite a 7.3% increase in total sales of EVs and plug-in hybrids across the country in October, with rival Xiamo seeing record deliveries of 48,654 units.

Government tax breaks on purchases of EVs and PHEVs are set to halve next year, as a consumer subsidy scheme comes to an end, so brands like Xiaomi and Li Auto are offering hefty discounts to incentivise demand.

Overall passenger car sales, meanwhile, slipped by 0.8% to 2.27m units, registering their first monthly decrease in nine months.