Imagine a company that once ruled the electric car world. Now imagine that same company struggling to sell its cars in one of the biggest markets on the planet—China. That’s the story of Tesla in 2025. Despite new car launches, big discounts, and huge marketing, Tesla’s sales in China have dropped to their lowest in years. The question now is: Can Tesla recover from this, or is the Chinese EV market slipping away forever?
A Scary Sales Slump in China
From May 5 to May 11, 2025, Tesla delivered only 3,070 vehicles in China. That’s a shocking 69% drop compared to the same week last year. Even though Tesla launched a new version of its popular Model Y, people in China didn’t seem interested.
This number is one of the lowest weekly sales Tesla has recorded in China since early 2023. For a brand that once led the EV market, this is more than just a bad week—it’s a red flag.
📅 April Wasn’t Any Better
If we zoom out to the full month of April 2025, the numbers are still bad. Tesla sold 28,731 units in China, which is:
8.6% lower than April 2024
61% lower than March 2025
Even exports from Tesla’s Shanghai Gigafactory went down by 3.3% year-over-year. And to make things worse, Tesla’s star model—the Model Y—saw a 24% decline in Chinese sales compared to the previous year.
💸 Discounts Aren’t Saving Tesla
To bring customers back, Tesla offered an eye-catching 0% interest for 5 years on its Model Y. That’s a rare and generous deal.
But even this move couldn’t stop the drop in sales. Tesla’s Chinese customers usually go for cheaper versions of the Model 3 and Model Y, which already give Tesla lower profits. Add deep discounts, and the profit gets even thinner—sometimes nearly zero.
So even the cars that are sold might not be making Tesla much money in China.
⚔️ Chinese EV Giants Are Winning the Race
While Tesla stumbles, local Chinese EV makers are booming. In the same week that Tesla delivered only 3,070 cars, BYD sold nearly 68,000 vehicles. Yes, you read that right—68,000 in just one week.
Other Chinese brands like Xiaomi, ZEEKR, and NIO are also growing fast. Their secret? High-tech features, affordable prices, and strong local support. These brands understand Chinese customers better—and it shows in their numbers.
🌐 Politics Are Making It Worse
Another reason behind Tesla’s fall in China is politics. Trade tensions between China and the U.S. have created an uncomfortable vibe. Even though some tariffs were relaxed recently, many Chinese buyers now prefer to support local brands over American ones.
This anti-American brand sentiment is slowly spreading, and Tesla is feeling the impact.
📊 Tesla China Sales Breakdown Table
Here’s a clear view of how Tesla’s Chinese market is struggling:
| Period | Units Sold | Change YoY | Change MoM | Model Y Sales Drop | Notes |
|---|---|---|---|---|---|
| May 5–11, 2025 | 3,070 | -69% | N/A | High | One of the lowest weekly sales ever |
| April 2025 | 28,731 | -8.6% | -61% | -24% | Compared to April 2024 and Mar 2025 |
| Model Y (April) | N/A | N/A | N/A | -24% | Specific Model Y drop YoY |
| Tesla Shanghai Exports | N/A | -3.3% | N/A | N/A | Exports also dropped |
| BYD Weekly Sales | ~68,000 | Massive ↑ | N/A | N/A | Crushing Tesla in local market |
| Financing Offer | 0% for 5yrs | N/A | N/A | N/A | Still didn’t help boost sales |
| Tesla Model Focus | Model Y & 3 | N/A | N/A | N/A | Mostly cheaper trims sold |
| Profit Margins | Very Low | N/A | N/A | N/A | Not profitable after discounts |
| Brand Sentiment | Declining | N/A | N/A | N/A | Due to US-China tensions |
| Competitor Growth | Strong | N/A | N/A | N/A | BYD, Xiaomi, ZEEKR expanding rapidly |
🔍 Can Tesla Turn It Around?
Tesla isn’t done yet, but it needs to act fast. Here’s what it can consider:
Launch new models designed just for the Chinese market
Cut costs on entry-level EVs without hurting quality
Improve local partnerships and customer support
Be more present in EV tech innovation within China
If Tesla doesn’t move quickly, Chinese consumers will continue to move on—and so will Tesla’s dominance.
🧠 Final Thoughts
Tesla’s drop in Chinese sales is not just about slow weeks or seasonal dips. It’s a clear sign of changing tides in the global EV market. China was once Tesla’s golden goose. But now, local brands are faster, smarter, and better connected to the people.
This is a make-or-break moment for Tesla in Asia. Either it adapts and evolves—or it risks becoming a luxury relic in the world’s biggest EV battlefield.
I am Muhammad Waqas and I am dedicated to promoting sustainable vehicles. Observing EV trends, studying the intricacies of the EV industry, and promoting new EV launches fall under my expertise. I have been working in this field for 5 years and making efforts for a sustainable and healthy future.
