Despite running various promotions and incentives, Tesla's sales in China fell during the third quarter, raising questions about the company's future in a vital market.
What's happening?
Tesla's third-quarter deliveries in China fell by 8% compared to the same time frame in 2024, Electrek reports. When added to its first-half declines, that means the company is down 6.4% year-over-year through September.
The decline comes despite Tesla starting deliveries of its Model YL in China during the third quarter and offering 0% financing on many of its vehicles. Tesla has already announced that 0% financing, which represents a savings of roughly $1,500 to $2,500, will extend through the end of this year.
China is the world's largest electric vehicle market, with nearly half of the cars sold in the country being electric. It also has more competition than any other market, with automakers such as BYD and Nio offering plenty of options for EV shoppers.
"The [battery electric vehicle] market is way too competitive in China," one commenter pointed out. "There is no way Tesla would be able to dominate a market with such a wide range of variables."
Why does this matter?
Tesla's sales problems extend past China's borders, as the company has seen its sales slip throughout 2025.
In Europe, for example, Tesla sold 23% fewer cars this August than it did in August 2024. And in countries such as Germany and the United Kingdom, sales have fallen by more than 50%.
In the past, a dip in Tesla sales would have meant fewer EVs being sold overall. Fortunately, that's not the case anymore. In fact, EV sales have never been higher, and Tesla is instead losing market share to increased competition. In the United States, Tesla accounted for just 38% of EV sales in August, its lowest share in eight years.
What can I do about this?
No matter what brand you buy, switching from a gas-powered vehicle to an EV is one of the most impactful moves you can make to help our environment.
Even when accounting for the lithium mining that occurs for their batteries, and the electricity needed to charge them, EVs remain considerably more eco-friendly than their gas-powered counterparts.
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In addition, because charging costs are considerably lower than filling up at a gas station, and because oil changes aren't necessary, EVs are actually cheaper to drive each year.
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