Tesla Faces Sharp Sales Decline in China as October Numbers Drop to Three-Year Low

Tesla's October sales in China fell to just 26,006 vehicles, the lowest figure in the last three years. The company is facing stiff competition and weak demand. The decline is significantly higher than in September. Tesla performed well in September, selling 71,525 vehicles, after launching a new, longer version of its popular Model Y in China.

However, exports of Tesla cars manufactured in China increased to 35,491 units, the highest in two years. According to the China Passenger Car Association, Tesla's share of the Chinese EV market fell to just 3.2% in October, compared to 8.7% in September. This is also the lowest in three years. Tesla sales were weak in Europe last month, not just in China. The company's performance was disappointing in Germany, Spain, the Netherlands, and the Nordic countries.

Meanwhile, Xiaomi achieved record sales of 48,654 units last month, thanks to its new electric cars, the SU7 sedan and YU7 SUV. However, accidents involving its sedans have raised questions about EV safety. Furthermore, the reduction in government subsidies and tax exemptions in China has decreased purchasing power, resulting in a decline in overall car sales in October.