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The Future Automobile > Electric Cars > Tesla’s China sales slow as new Model Y arrives
Electric Cars

Tesla’s China sales slow as new Model Y arrives

2 months ago 3 Min Read
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Tesla (TSLA) slows down in China despite new Model Y production
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Despite ramped-up production of the Model Y, Tesla’s (TSLA) gross sales and exports in China slowed down in April, a development that contrasts with the company’s poor Q1 performance.

China has officially commenced reporting on its domestic passenger car sales as well as exports.

According to the latest figures, Tesla sold 28,731 vehicles in China during April, representing an 8.6% decline from the same period last year.

Tesla’s exports of vehicles plummeted by 3.3%, recording a total of 29,728 units shipped out.

Tesla’s monthly retail and export numbers in China demonstrate a three-year trend:

Tesla suffered a slump in Q1 2025 compared to the same period over the past two years, citing the Model Y production transition as the primary reason for the decline.

Despite its impact, it’s worth noting that Tesla had already rapidly discounted vehicles in China before the Model Y’s launch, as Electrek reported earlier, suggesting lower-than-expected deliveries due to high demand combined with limited Model Y supply in the first quarter?

Tesla reportedly resumed normal production in April, yet its home deliveries and exports still fell short compared to April 2024, a month that had already seen a significant decline from the previous year’s figures.

Electrek’s Take

Despite offering unprecedented incentives and discounts, Tesla has struggled to start the year strongly in China, recording its worst January-to-April performance in three years.

As a result of intensifying competition, the automaker faces the threat of being gradually pushed out of its stronghold in the Chinese market. Despite Tesla’s global impact being felt on US and European auto markets thanks to Elon Musk, the brand has surprisingly bucked this trend in China.

See also  Toyota’s ultra-long-range EV batteries may have just hit a speed bump

Competitors is simply brutal. Chinese language manufacturers have traditionally dominated value leadership, but are increasingly closing the gap and even surpassing their Western counterparts in terms of quality and performance.

With a robust lineup including Model 3 and the top-selling Model Y, Tesla initially enjoyed a competitive advantage in the market. However, the launch of the new Model Y will soon draw attention from rivals eager to take a share of this coveted segment.

It’s likely that Tesla will experience a significant drop in gross sales in China over the next few months.

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TAGGED: Electric, Electric Car, Electric Vehicles, Tesla
TheFuture Automobile May 25, 2025 May 25, 2025
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