13:44 02-09-2025

Tesla’s China EV sales slip in August despite output rebound

Sales of China-built Tesla EVs slipped 4% in August year over year, extending the decline seen a month earlier. On a monthly basis, though, momentum improved: production and deliveries of the Model 3 and Model Y from the Shanghai plant, including exports to Europe, climbed 22.6% to 83,192 vehicles. The swing suggests demand hasn’t vanished so much as it ebbs and flows with fresh supply and timing.

The landscape remains fiercely competitive. Despite a Model Y refresh in January, Tesla’s results for the first seven months of 2025 lag last year’s. To rekindle interest, the company trimmed the price of the rear-wheel-drive Model 3 with a 830 km range by 3.7%, and opened sales of the new extended Model Y L with a six-seat interior starting at 339,000 yuan. The move underscores a bet on value and practicality to keep shoppers engaged.

Meanwhile, Xiaomi is pressing hard: its first crossover, the YU7, drew more than 240,000 preorders within a day of its debut, and the SU7 sedan has consistently outsold Tesla’s Model 3 since December. BYD is also seeing a slowdown in its home market, yet remains the biggest player by volume. In this crowd, share is won on execution—model by model, week by week.

China is Tesla’s second-largest market after the United States, but with local brands tightening the screws and political polarization around Elon Musk intensifying, the company’s footing looks less secure. That blend of market pressure and public mood is proving trickier to navigate than any routine model update.