Tesla recorded its lowest monthly delivery figures in China in three years in October, as demand for the new six-seat Model Y L slowed and more vehicles were diverted for export, according to data from the China Passenger Car Association (CPCA).
The U.S. electric vehicle maker sold 26,006 vehicles at retail in China last month, down 35.76% from 40,485 units a year earlier and 63.64% lower than September’s 71,525 vehicles. It was the lowest figure since November 2022, the CPCA said.
The sharp decline follows a temporary boost in sales from the launch of the Model Y L, which Tesla introduced on August 19 and began delivering on September 2. The company had achieved its second-highest monthly retail sales in China this year in September, trailing only March’s 74,127 units.
Tesla operates a factory in Shanghai that produces the Model 3 sedan and Model Y SUV for both domestic and export markets. In October, the company exported 35,491 vehicles, the highest monthly figure since November 2023, marking a 27.69% increase year-on-year and an 84.02% rise from September. Including domestic sales and exports, Tesla China’s wholesale sales totaled 61,497 vehicles, down 9.93% year-on-year and 32.28% from September.
Breaking down the data, Model Y wholesale sales in October were 38,562 units, down 8.76% from a year earlier, while Model 3 sales reached 22,935 units, representing an 11.84% decline.
The weaker domestic performance comes amid rising competition in China’s electric vehicle sector, where local automakers such as BYD and Li Auto continue to expand aggressively. Analysts say Tesla may need to introduce new products to sustain growth in the world’s largest EV market.
Local media reports suggest Tesla China is developing two new models, internally codenamed E41 and D50, described as simplified versions of the Model Y and Model 3. Production of these vehicles could start in mid-2026 or later, according to 36Kr.
To bolster its lineup, Tesla launched a new five-seat Model Y variant in China on November 8, featuring an 821-kilometer CLTC range — the longest among the Model Y series. The Long-Range Rear-Wheel Drive version is priced at RMB 288,500 ($40,500), with an estimated delivery window of two to four weeks.