Tesla's Sales in China Hit Their Lowest Level on Record
Of these, 59,012 were exported to international markets, meaning that approximately 87% of the factory’s output was directed towards exports.
Tesla’s domestic sales in China have fallen sharply, while its exports have increased. In October, the company sold just 8,817 vehicles in the Chinese market. This represents a 66% decline compared with the same month last year and marks the lowest figure since July 2022.
However, Tesla’s production and overall deliveries have not declined at the same pace. Giga Shanghai, the company’s factory in Shanghai, produced or delivered 67,829 vehicles in October, of which 59,012 were shipped to international markets. This means approximately 87% of the factory’s output was directed towards exports.
Model Y accounted for the majority of Tesla’s domestic sales in China. In October, the company sold 7,807 Model Y vehicles and just 1,010 Model 3 units. Compared with September, domestic sales fell by 86%.
The main reason behind this decline is not a collapse of the overall market. Retail sales of new energy vehicles (NEVs) in China fell by 10% in October. Nevertheless, Tesla’s 66% decline indicates that the company is losing ground in the competitive market. During the same period, Xiaomi delivered more than 50,000 vehicles, Leapmotor reached 106,127 deliveries, and BYD delivered 490,168 vehicles.
Meanwhile, Tesla’s exports are growing rapidly. Between January and October, exports from Giga Shanghai increased by 101% to 420,984 vehicles. This figure exceeded the factory’s domestic sales in China. As a result, the Shanghai facility is increasingly becoming an export hub.
Tesla typically prioritizes exports during the first month of each quarter and leaves domestic deliveries for the following months. Therefore, the company’s November and December sales figures will be particularly important. Last year, Tesla sold 73,145 and 93,843 vehicles in China during those months, respectively. If similar figures are achieved this year, October’s sharp decline may partly be attributed to temporary logistics and delivery allocation factors.