- Tesla's retail sales in China came in at 26,006 units in October, marking the lowest figure since November 2022.
- The sharp decline in sales may be partly attributed to waning momentum for the Model Y L and a significant surge in exports from the Shanghai factory.
Tesla (NASDAQ: TSLA) recorded its lowest monthly delivery figures in China in three years last month, as momentum for the new six-seat Model Y L faded and more vehicles were allocated for export.
The US electric vehicle (EV) maker sold 26,006 vehicles in China at retail in October, the lowest since November 2022, according to data released today by the China Passenger Car Association (CPCA).
This represents a 35.76 percent decline from 40,485 units sold in the same month last year and a 63.64 percent drop from 71,525 units in September.
The sharp decline may partly stem from waning momentum for the Model Y L. Tesla launched the six-seat SUV in China on August 19 and announced on September 2 that deliveries had begun.
Bolstered by the Model Y L, Tesla achieved its second-highest monthly retail sales in China this year in September, trailing only March's 74,127 units, according to data compiled by CnEVPost.
Tesla operates a factory in Shanghai producing the Model 3 sedan and Model Y, serving both domestic customers and export markets.
The company exported 35,491 vehicles from China in October, marking its highest monthly figure since November 2023. This represents a 27.69 percent year-on-year increase and an 84.02 percent rise from September.
Including sales in China and exports, Tesla China's wholesale sales in October totaled 61,497 vehicles, marking a 9.93 percent year-on-year decline and a 32.28 percent drop from September.
Model Y wholesale sales in October were 38,562 units, down 8.76 percent year-on-year and down 35.63 percent month-on-month.
Model 3 wholesale sales in October totaled 22,935 units, down 11.84 percent year-on-year and down 25.79 percent month-on-month.
As competition intensifies, Tesla needs to inject new momentum in the world's largest EV market.
Last month, a local media outlet reported that Tesla China was advancing two new vehicle projects, internally codenamed E41 and D50, which are stripped-down versions of the current Model Y and Model 3 respectively.
Production of these simplified models in China may begin in mid-2026 or later, according to a report by 36Kr.
Two days ago, on November 8, Tesla launched a new five-seat Model Y variant in China featuring an 821-kilometer CLTC range -- the longest in the SUV lineup.
The Model Y variant -- the Long-Range Rear-Wheel Drive -- starts at RMB 288,500 ($40,500) with an estimated delivery wait of 2-4 weeks.
January-October performance
From January to October, Tesla's retail sales in China came in at 458,710 units, marking an 8.38 percent year-on-year decline.
Exports from the Shanghai factory totaled 209,151 units during the same period, down 14.05 percent year-on-year.
Tesla China's wholesale sales for this period amounted to 667,861 units, reflecting a 10.24 percent year-on-year decrease.
Model Y wholesale sales from January to October reached 417,229 units, down 6.89 percent year-on-year.
Model 3 wholesale sales from January to October were 250,632 units, down 15.31 percent year-on-year.
