Tesla’s performance in China took a step back in October, with sales slipping nearly 10% compared to the same month last year.
According to preliminary data from the China Passenger Car Association (CPCA) released on Tuesday, the automaker sold 61,497 vehicles made at Giga Shanghai — a 9.93% year-over-year decline and a 32.3% drop from September’s 90,812 units.
The numbers reported today are wholesale, and includes both domestic sales and vehicles exported to other markets. A breakdown of these figures is expected to be released later this week.
Decline Follows Strong September
Tesla’s September results had shown signs of recovery, but October’s figures signal a slowdown in demand. The 61,497 vehicles delivered last month represent the company’s lowest monthly total since May, according to data tracked by CNEvPost. It also marked Tesla China’s eighth year-over-year monthly decline in 2025, with growth only recorded in June and September.
From January through October, Tesla’s cumulative wholesale sales in China totaled 667,861 units, down 10.24% compared to the same period last year. These figures include both domestic deliveries and exports to markets such as Europe and India.
New Model Y L Unable to Sustain Demand
Tesla’s new Model Y L could have been a contributing factor to the monthly decline. The six-seat variant began deliveries in September following its August launch, resulting in strong sales that month, but demand appears to have leveled off.
Current Model Y L buyers in China are expected to receive deliveries in December, according to Tesla’s website. Delivery estimates for other variants of the Model Y range from two to five weeks, depending on configuration.
Rivals Feel the Pressure Too
Tesla isn’t alone in facing declining sales. BYD, its largest domestic rival, reported a 12% dip in total global sales to 441,706 units in October — its steepest drop in nearly two years. However, BYD’s all-electric passenger vehicle segment grew 17% to 222,559 units, showing a shift in consumer preference toward fully electric models instead of hybrids, bucking the trend in other markets, like in Canada and Europe.
What’s In Store
Tesla continues to focus on broadening its product lineup in China. Local reports suggest the company is advancing two new vehicle projects, internally known as “E41” and “D50,” described as simplified versions of the current Model Y and Model 3. Both are reportedly in the validation testing stage and could enter production in early to mid-2026.
