Tesla sold 69,129 China made electric vehicles in January, marking a 9.3% increase from the same period a year earlier and extending gains for a third consecutive month, even as the company continues to lose market share in key global markets. Deliveries of Model 3 and Model Y vehicles produced at Tesla’s Shanghai plant, including exports to Europe and other regions, fell 28.9% from December levels, according to data released on Wednesday by the China Passenger Car Association.
Europe and China pressures intensify
The U.S. electric vehicle maker has struggled with weakening demand across major European markets over the past year, where intensifying competition from rivals such as BYD has added pressure to the brand. Tesla has also faced consumer backlash in parts of Europe following public political campaigning by its chief executive, Elon Musk. In China, the world’s largest EV market, Tesla’s share slipped to 8% last year from 10% in 2024, despite strong momentum late in the year that saw December deliveries reach a record 93,843 units.
Financing moves and software strategy
To stimulate demand, Tesla introduced a seven-year, low-interest financing plan for Model 3 and Model Y buyers in China in January, prompting several domestic competitors, including Li Auto, Xiaomi and Xpeng, to roll out similar incentives. Musk has said he expects regulators in Europe and China to approve Tesla’s driver-supervised Full Self-Driving system as early as this month, as the company seeks to boost software-related revenue amid a slowdown in vehicle sales growth.
Meanwhile, BYD reported a 30% decline in global sales in January, after changes to a government auto trade-in subsidy scheme weighed on demand for lower-priced vehicle brands.
