Tesla reported a total of 40,485 vehicle sales in China during October, marking its lowest monthly sales figure since April. This decrease comes alongside a substantial surge in exports, which rose sharply by 72.41 percent compared to the previous month, highlighting the shifting focus of the company’s operations at its Shanghai factory.
Despite the decline in domestic deliveries, Tesla (NASDAQ: TSLA) delivered a total of 68,280 vehicles in China during the month, a metric that includes 27,795 units shipped overseas. This data was released by the China Passenger Car Association (CPCA) today, revealing a complex picture of the company’s standing in one of its most critical markets.
The notable figure of 40,485 vehicles sold domestically in October represents a significant decline from the previous month but reflects a year-on-year increase of 41.43 percent from October 2022, where only 28,626 units were delivered. However, this October’s sales also fell sharply by 43.93 percent from September’s impressive total of 72,200 vehicles.
In total, from January through October, Tesla successfully surpassed the 500,000-unit sales milestone in China, achieving a total of 500,685 vehicles sold — an 8.29 percent increase compared to the same timeframe in the prior year.
Tesla’s state-of-the-art Shanghai factory produces both the Model 3 sedan and Model Y crossover, serving dual roles of fulfilling local customer demand and acting as a key export hub for international markets.
As the fourth quarter commenced, Tesla strategically allocated a larger number of vehicles for export, impacting the sales figures reported for the domestic market. The company’s total sales for October, which include exports, saw a decline of 5.32 percent when compared to the same month last year, with September’s sales also representing a notable decline of 22.69 percent.
The export figures from Tesla’s Shanghai plant portrayed a mixed narrative, with a decrease of 36.09 percent compared to the same month last year, dropping from 43,489 units. However, there was a significant rebound of 72.41 percent from just 16,121 units exported in September.
Within the scope of Tesla’s October sales, the Model Y dominated the sales mix with 42,265 units sold, representing 61.90 percent of total sales. This figure indicates a 10.39 percent drop from last year’s figures of 47,164 in October, and a 17.37 percent decrease from September’s sales of 51,152 units.
Meanwhile, Model 3 sales for the month, which also included exports, stood at 26,015 units, contributing 38.10 percent to Tesla’s overall sales in China for October. This reflects a modest increase of 4.26 percent from the previous year, but aligns with a 30.01 percent decrease from the impressive performance in September when 37,169 units were sold.
Retail sales figures specific to the Model 3 and Model Y in China for October are still pending release, indicating that additional insights into consumer demand are forthcoming.
In contrast, the broader new energy vehicle (NEV) sector in China reached a remarkable record of 1.2 million units sold in October. This represents a robust year-on-year increase of 56.7 percent, alongside a slight 6.4 percent rise from September’s figures.
Battery electric vehicles (BEVs) alone accounted for 673,000 units sold in October, making up 56.3 percent of all NEV retail sales. This reflects a 36.79 percent increase year-on-year and a 4.50 percent rise compared to September.
This performance indicates that Tesla’s share of the Chinese NEV market edged down to 3.39 percent in October, a drop from 6.43 percent in September and 3.73 percent from the same time last year, according to calculations by CnEVPost.
In the context of the BEV market specifically, Tesla’s share amounted to 6.02 percent in October, which is a decrease from September’s 11.21 percent but still higher than the 5.78 percent recorded a year ago.
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**Interview with Automotive Analyst Jane Doe on Tesla’s Sales Decline in China**
**Editor:** Welcome, Jane. Thank you for joining us today to discuss Tesla’s recent sales figures in China. It’s been reported that Tesla sold 40,485 vehicles in October 2024, which marks a significant decline from September. What do you think are the primary reasons behind this drop?
**Jane Doe:** Thank you for having me. The decline in Tesla’s sales figures can be attributed to a combination of factors. First and foremost, there’s intensified competition in the Chinese market from local electric vehicle manufacturers like BYD and Nio. These brands have been releasing new models that are appealing to consumers and often come at a lower price point.
**Editor:** That’s an important point. We’ve also seen a noteworthy increase in Tesla’s export numbers. How does this shift impact their domestic sales?
**Jane Doe:** Indeed, Tesla’s strategy appears to be pivoting towards maximizing exports from its Shanghai factory, which has affected its domestic sales. While exports rose 72.41 percent from September, it signals a strategic focus on international markets, perhaps in response to stronger demand abroad. This shift is clear as Tesla allocated more vehicles for export, inevitably leading to fewer available for local buyers.
**Editor:** You mentioned the competition. How do you see the overall market dynamics affecting Tesla going forward in China?
**Jane Doe:** The competition will continue to pose challenges for Tesla, especially as domestic brands enhance their offerings. However, it’s worth noting that even with the current decline, Tesla reported a year-on-year increase of over 41 percent from October 2022. This shows that Tesla has a solid customer base. They will likely need to innovate and possibly adjust pricing strategies to remain competitive in this rapidly evolving market.
**Editor:** With numbers hitting over 500,000 units sold in China year-to-date, how significant is this milestone against the backdrop of recent challenges?
**Jane Doe:** Surpassing the 500,000-unit mark is indeed a significant achievement, demonstrating Tesla’s robust demand over the course of the year. Despite the recent decline, achieving an 8.29 percent increase year-over-year is a positive indicator of growth. It shows that Tesla still has strong brand loyalty and demand, but they will need to navigate these competitive pressures to maintain that momentum.
**Editor:** Thank you, Jane, for your insights into Tesla’s recent challenges and achievements in China. It will be interesting to see how they adapt to this evolving market landscape.
**Jane Doe:** Thank you! It’s always a pleasure to discuss these developments in the automotive industry.
