Tesla's China sales hit three-year low amid fierce competition

Investing.com -- Tesla’s sales in China dropped to 26,006 vehicles in October, marking their lowest level in three years as the electric vehicle maker faces challenges with weak demand in the competitive Chinese market.

Sales fell 35.8% compared to the same period last year, a significant decrease from September’s figure of 71,525 vehicles when Tesla began delivering the Model Y L, a longer-wheelbase and six-seat version of its best-selling Model Y SUV that is exclusively available in China.

Despite the domestic sales slump, Tesla’s exports of China-made vehicles increased to a two-year high of 35,491 units last month, according to data released by the China Passenger Car Association on Monday.

Tesla’s share of China’s electric vehicle market dropped dramatically to just 3.2% in October, down from 8.7% in September, reaching its lowest point in more than three years.

Meanwhile, Xiaomi recorded strong performance of competing models, the SU7 sedan and the YU SUV, achieving record sales of 48,654 units in October, even as accidents involving its sedans raised electric vehicle safety concerns.

The overall car sales in China declined in October as expected, with consumer sentiment weakening due to reduced government subsidies and tax breaks.

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