Tesla reported a significant decrease in sales of its China-made electric vehicles (EVs) for February, with figures reaching the lowest point since August 2022. The company sold 30,688 units during the month, marking a 49.2% decline compared to the same period last year and a 51.47% drop from January’s sales of 63,238 vehicles.
In the first two months of 2025, Tesla’s Shanghai plant sold a total of 93,926 vehicles globally, reflecting a 28.7% decrease from the 131,812 units sold during the same period in the previous year.
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The decline in sales is attributed to several factors, including the shift in the Lunar New Year holiday, which occurred from January 28 to February 4 this year, earlier than last year’s February 10-17 period. This holiday typically results in reduced production and deliveries across various industries.
Additionally, Tesla implemented a partial suspension of its Model Y production lines in Shanghai during the holiday to optimize equipment and prepare for increased production of the updated SUV model. This suspension lasted approximately three weeks, from January 22 to February 14.
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Despite these challenges, Tesla introduced the revamped five-seat Model Y in China on January 10, with deliveries commencing on February 26. The company initially offered two variants under the “Launch Series,” providing buyers with additional benefits, with sales concluding on February 28. The regular version of the revised Model Y became available in China on March 1, maintaining the same pricing as the Launch Series.
In contrast, Chinese competitor BYD experienced a substantial increase in sales, with a 90.4% rise, totaling 614,679 units sold. This surge is driven by the introduction of smart EVs priced below $10,000, intensifying price competition in the market.
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Tesla continues to face growing competition in the Chinese EV market, with rivals such as Li Auto, XPeng, Nio, and BYD expanding their offerings. Li Auto, for instance, announced its first all-electric SUV, the Li i8.