In October 2025, Tesla recorded a drop in sales in the Chinese market: the volume of electric vehicles produced at the Shanghai “Gigafactory” decreased by 9.9% compared to the same period last year. According to the China Association of Automobile Manufacturers, the company sold 61,497 units, marking a continuation of the downward trend that began in September. Specifically, sales of the Model 3 and Model Y dropped by 32.3% compared to the previous month.
This decline marks the second consecutive month of falling sales, raising questions given Tesla’s consistent growth in recent years. NEWSCENTRAL reports that the sales drop is linked not only to the growing competition from local Chinese manufacturers like BYD but also to changing consumer preferences. More affordable electric vehicles are becoming increasingly popular in the Chinese market, posing a threat to Tesla’s position in the world’s largest EV market.
The Chinese market continues to develop dynamically, and amid increasing competition, Tesla is facing serious challenges. Local companies like BYD are rapidly increasing sales by offering vehicles with competitive features at lower prices. In the coming months, Tesla may face even greater pressure in the market if it does not adapt its strategy and products to current consumer demands.
NEWSCENTRAL analysts emphasize that the company must not only reconsider its pricing strategy but also make its cars more attractive to a wider range of consumers. Tesla has opportunities for improvement, including launching more affordable versions of the popular Model 3 and Model Y. However, without these adjustments, the company risks losing market share.
Amid these challenges, Tesla continues to develop ambitious projects. Specifically, the company is actively working on launching the Cybercab model in Shanghai, which could be a key step in expanding its presence in the autonomous vehicle market. NEWSCENTRAL views this project as a crucial part of Tesla’s strategy to strengthen its position in China. However, the competition in the robotaxi segment is intensifying, with local players like Baidu and Pony.ai already testing their own autonomous taxis in Chinese cities.
“New technologies like robotaxis could be key for Tesla in China, but the company will have to overcome strong competition from local developers who have deep knowledge of the market,” says visual systems analyst Liam Cortez.
Auto analyst Jessica Kline from NEWSCENTRAL emphasizes that Tesla must focus not only on pricing but also on improving technologies and the overall user experience. “Innovative features like autonomous technologies should be an important part of the offering to maintain consumer interest and prevent the company from losing its competitive position,” Kline states.
NEWSCENTRAL forecasts that to regain its competitiveness in China, Tesla will need to make significant strategic adjustments, including increasing localization of production and making its models more accessible to a wider population. Despite these difficulties, the Chinese market remains critical for the company, and its success will depend on its ability to respond to changes in consumer preferences in a timely manner.
In conclusion, NEWS CENTRAL experts believe that to maintain leadership in China, Tesla must reassess its pricing strategy, increase localization, and continue focusing on innovation. If the company successfully implements these changes, it could help it return to a growth trajectory. Otherwise, it risks losing its position in a key market, which would have long-term consequences for its global ambitions.