Tesla’s China-made electric vehicle sales fell 9.9% to 61,497 units in October from a year earlier, reversing a 2.8% rise in September, according to data from the China Passenger Car Association released Tuesday.
Sales of the company’s Model 3 and Model Y vehicles produced at its Shanghai gigafactory — including exports to Europe, India, and other markets — dropped 32.3% from September.
The data did not specify how much of that total came from exports versus domestic deliveries, though most of the output is believed to serve customers in China.
Demand for Tesla weakens across the globe
Tesla’s global momentum has slowed as demand in Europe stagnates and uncertainty clouds the US market following the expiration of tax credits that helped drive record sales in the third quarter.
The company has recently introduced new, lower-cost versions of its Model 3 and Model Y — priced under $40,000 — in a bid to rekindle demand.
However, these versions come with reduced battery range and omit certain features, such as ambient interior lighting and a second-row screen.
Tesla has not yet announced when these versions will be available in China, its largest overseas market.
Meanwhile, BYD, Tesla’s biggest Chinese rival, reported a 12% drop in global vehicle sales last month — its steepest decline in nearly two years — highlighting the fierce competition and shrinking margins across China’s EV market.
European sales slide amid rising competition
Tesla’s challenges extend well beyond China. Through September, the company’s European sales were down 28.5% compared with the same period last year, as competition intensifies from both legacy automakers and a growing wave of Chinese entrants.
Analysts attribute Tesla’s weakness to its ageing model lineup and limited range of offerings, leaving it increasingly exposed in a crowded market.
Despite the slowdown, Tesla remains the top-selling automaker in Norway, where nearly all new vehicles sold are electric. But rivals are closing in quickly.
In Denmark, Tesla was overtaken by several Chinese EV brands, including BYD, Xpeng, and Geely’s Zeekr.
In Spain, Tesla’s 393 cars sold in October were eclipsed by SAIC’s MG brand with 3,725 units, BYD with 2,806, and Chery’s Omoda and Jaecoo brands with 1,433 and 974, respectively.
In Sweden, Tesla sold just 133 vehicles in October — trailing not only mainstream brands but also Porsche, which delivered 172 units.
Cumulatively, Tesla’s sales in Sweden through October were down 67% year over year.
The pay vote continues to divide Tesla investors
Adding to the pressure, Norway’s sovereign wealth fund — the world’s largest — announced earlier on Tuesday that it would vote against ratifying Musk’s proposed $1 trillion compensation package.
The fund cited concerns about the “excessive size” of the deal, potential shareholder dilution, and the risks associated with Musk’s outsized influence over the company.
The announcement comes ahead of Tesla’s annual shareholder meeting on Thursday, where investors will vote on several resolutions, including Musk’s record-setting pay proposal.
If approved, the plan would grant Musk an additional 12% stake in Tesla should the company’s valuation reach $8.5 trillion within ten years — potentially making it the largest CEO compensation package in history.
While Tesla’s board has defended the deal as vital to retaining Musk and driving long-term growth, critics argue it is disproportionate and could harm shareholder interests.
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