The latest data shows that Tesla’s sales performance in the Chinese market hit a three-year low in October. Tesla’s sales in China in October decreased by 35.8% compared to the same period last year, reaching 26,006 vehicles, lower than September’s 71,525 vehicles. At the same time, Tesla’s market share in the Chinese electric vehicle market in October was only 3.2%, also hitting a three-year low, far below September’s 8.7%.
Tesla introduced the Model Y Long Range version in China starting in September this year, which is a 6-seater version of its best-selling “Model Y SUV” model with an extended wheelbase, only available for sale in China so far. Despite a rebound in Chinese sales in September, increasing by 2.8% compared to the same period last year, its third-quarter (Q3) cumulative sales still declined from the same period last year.
Analysts from Reuters believe that Tesla’s decline in sales in China is mainly due to weak demand and intense market competition, expecting the pressure from the Chinese market to continue to grow as China is the company’s second-largest market after the United States.
Overall car sales in China slowed down as expected in October, as government subsidies and tax incentives reduced, leading to a weakened consumer confidence in China.
On the other hand, although Xiaomi’s SU7 sedan and YU7 SUV set a new sales record in October, reaching 48,654 vehicles, concerns over safety have been raised after multiple incidents of spontaneous combustion, locked doors, axle fractures, and other serious accidents.
Despite Tesla’s sales in China not meeting expectations, its export performance is impressive. According to data released by the China Passenger Car Association on Monday, Tesla’s exported vehicles manufactured in China increased to 35,491 vehicles in October, setting a new high in two years.
Tesla’s sales in countries like Germany, Spain, the Netherlands, and Northern Europe in October also showed a downturn, once again highlighting its ongoing challenges in the European market.