Tesla Crashes in China!
- Published on 11/11/2025 16:24
Tesla faces a dramatic slowdown in the Chinese market, the largest in the world for electric vehicles.
In October 2025, Tesla’s retail sales in the Middle Kingdom dropped by 36% compared to the same period last year, with just over 26,000 vehicles delivered. This marks its worst month of the year, even compared to the production transition periods to the facelifted Model Y.
Over the entire year, Tesla is lagging by more than 40,000 units compared to 2024. To avoid its first annual decline in China, the company would need to achieve two consecutive months of record sales in November and December, a scenario that seems unlikely given current trends. If this trend continues, which is more than probable considering the context, it will be the second consecutive year of decline for Tesla in this strategic country.
A Deep Problem
The paradox is striking: electric vehicle sales are booming in China in 2025, but Tesla is not benefiting. The October figures from the China Passenger Car Association show a 9.9% decrease in locally manufactured vehicles, dropping after a slight 2.8% increase in September. Sales of the Model 3 and Model Y, including exports to Europe and India, fell by 32.3% compared to the previous month.
Meanwhile, local competitors, such as BYD, remain strong despite a slight, temporary drop in their sales. Tesla, which has not yet launched the low-cost “Standard” version of the Model Y in China, struggles to attract buyers against domestic competition. However, the manufacturer plans to unveil its Cybercab in Shanghai, but its timeline for Chinese robotaxis remains uncertain, while local players like Baidu, Pony.ai, and WeRide are already testing their services in several cities.
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The situation illustrates a reality Tesla can no longer ignore: competition in the Chinese market is fierce, and brand recognition alone is no longer enough. If the American firm wants to maintain its position, it will need to adapt its offerings and strategy to local tastes and prices, or risk seeing China turn away from its star for good.
This page is translated from the original post "Tesla s’effondre en Chine !" in French.
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