Tesla’s China-made electric vehicle sales declined 9.9% year-on-year in October to 61,497 units, reversing a 2.8% gain recorded in September, according to data released by the China Passenger Car Association (CPCA) on Tuesday.
The U.S. automaker’s Shanghai-produced Model 3 and Model Y vehicles — including exports to Europe, India, and other regions — saw a sharp 32.3% drop from the previous month, reflecting mounting pressure in both domestic and international markets.
Meanwhile, Tesla’s biggest Chinese rival, BYD, also reported a 12% decline in global vehicle sales in October, marking its second consecutive monthly decrease and the steepest drop in nearly two years. Analysts attribute the slowdown to intensifying competition in China’s electric vehicle sector, where dozens of automakers are battling for market share with aggressive pricing strategies.
Tesla has yet to confirm the launch date for its new lower-cost versions of the Model Y and Model 3 in China. The refreshed models, which forgo some premium features to reduce costs, have already rolled out across parts of Europe. However, despite the European launch, Tesla’s sales have continued to slide across several markets there, underscoring ongoing challenges in regions saturated with affordable EV options.
In contrast, BYD has managed to sustain strong momentum in Europe even as its domestic growth faltered.
Looking ahead, Tesla plans to showcase its much-anticipated Cybercab at an event in Shanghai starting Wednesday. It remains unclear whether the company intends to deploy the autonomous robotaxi in China, where local tech giants such as Baidu, Pony.ai, and WeRide have already been testing self-driving fleets in multiple cities.
