Tesla’s vehicle sales in China fell to a three-year low of 26,006 units in October, officoial data from the China Passenger Car Association (CPCA) showed on Monday.
The figures represent a 35.8% decline year over year, and a sharper 63.6% drop from September, typical at the beginning of each quarter.
Year-to-date Sales
From January to October, Tesla‘s retail sales in China totaled 458,710 units, an 8.4% decline year-over-year, while total sales including exports reached 667,861 units, 10.2% below the same period last year.
Wholesales — including both domestic and exports — from Giga Shanghai declined by 32% from September to 61,497 vehicles last month.
Sales of Shanghai-produced Model 3 and Model Ys fell by nearly 10% compared to October 2024.
Exports
Last month, a larger portion of Giga Shanghai’s production was dedicated to exports, following the company’s usual pattern of prioritizing exports at the start of each quarter before shifting focus to the domestic market.
The 35,491 vehicles exported last month, the highest export figures in two years, represented 57.7% of the vehicles manufactured in China.
Exports have increased by 27.7% from a year ago, and jumped over 84% from September.
Giga Shanghai, which manufactures both Tesla‘s best-selling sedan and SUV, exports vehicles to countries across the Asia-Pacific region and Europe (the Giga Berlin produces only the Model Y).
From January 1 through October 31, Tesla‘s China plant shipped 209,151 units — a decline of 14% year over year.
Tesla VS Chinese Brands
In October, sales of the US brand in China fell below some Chinese newcomers for the first time, including premium EV maker Nio.
XPeng had outsold Tesla in February when the Elon Musk-led company was transitioning to the new generation of its best selling vehicle, the Model Y.
The three companies have sold over 40,000 vehicles globally last month.
Xiaomi is currently selling only in China, while XPeng is available in about 5o markets and Nio in roughly ten.
The tech giant, which was co-founded by Lei Jun, only discloses quarterly figures for vehicle deliveries.
Xiaomi will report its third quarter earnings results later this month where the exact number of EVs delivered will be disclosed.
In September, XPeng exported “over 5,000” EVs, with the remaining vehicles being sold in China. October figures were not yet disclosed by the brand as of Monday.
Although both XPeng and Xiaomi are developing hybrids, the October figures for both companies only reflect fully electric models — Xiaomi has not yet launched its hybrid, and XPeng only released its first hybrid in early November.
For the Shanghai-headquartered Nio, which reported 40,397 vehicles delivered globally in October, overseas sales remain modest.
Updated Lineup in China
From the total units registered in October, the Model Y represented 38,562 units, 8.8% below the same month a year ago.
Sales of the best-selling SUV fell 35.6% from September.
Sales of the Model 3 totaled 22,935 units, falling 11.8% compared to the same month last year and 26% compared to the previous month.
In August, Tesla China introduced two new variants of the models in the country: the six-seat Model Y L and the Model 3 with the longest range yet.
The Model Y L drove much of Tesla‘s sales momentum in September, delivering 71,525 units—its second-best monthly result this year, behind only March.
The model is currently only produced in China and is only available in the Chinese market — with CEO Elon Musk having said this summer that it “might not ever” be produced in the United States.
In October, Tesla filed for regulatory approval to sell a new, longer-ranged variant of its best-selling SUV — the Model Y+.
Incentives in China
Tesla announced a new round of incentives for the Chinese market in October, including 0% APR in several model iterations, paint gifts and free Full-Self Driving (FSD) transfer for customers purchasing a new Tesla vehicle.
These discounts, available until the end of October, were renewed in the beginning of November.
Last week, during Tesla‘s Annual Shareholder Meeting, the company’s Chief Executive Officer revealed that they expect full FSD (Supervised) approval in China in the first quarter of 2026.
“We have partial approval,” Musk noted, adding that “hopefully, we’ll have full approval in China around February or March or so. That’s what they’ve told us.”
