Tesla’s China Sales Drop Amid Domestic Competition

On Feb 8, 2025

In January, Tesla experienced a decline in car sales to China as domestic competitors intensified their efforts in the electric vehicle market. The heightened competition from local manufacturers is exerting pressure on Tesla’s market share in one of its largest global markets.

This trend signals a growing challenge for Tesla, which has been facing increased competition from Chinese companies offering innovative and cost-effective alternatives.

As these domestic rivals ramp up production and introduce new models, Tesla’s dominance in the Chinese market is being put to the test.

In January, Tesla sold 63,238 electric vehicles, an 11.5% decrease from the 71,447 vehicles sold during the same period the previous year.

During premarket trade, Tesla’s stock was down roughly 1.5 percent.

In contrast, Chinese rival BYD sold 296,446 plug-in hybrid and all-electric cars last month, a 47% increase from the previous year.

Sales growth was also reported by Xpeng and Changan Automobile, two of Tesla’s Chinese competitors.

Tesla has made an effort to keep Chinese consumers interested in its vehicle by offering price reductions.

Tesla cut the price of its Model Y vehicle late last year and offered a five-year credit option with no interest until the end of January.

The American behemoth also revealed a redesigned Model Y, one of its top-selling EV vehicles, in China last month.

A 0% interest plan was also included with this.

Since it started shipping the Cybertruck in late 2023, which starts at about $80,000, Tesla has not released a new model.

In order to boost sales, investors have been clamouring for the corporation to adopt a new mass-market strategy.

According to Tesla, a new, reasonably priced model might be released in the first half of 2025.

As competitors introduce comparable capabilities, the carmaker is attempting to introduce its driver assistance system, which it markets as “Full Self Driving,” in China this year.

CNBC