Worsening Conditions Expected to Persist, Experts Warn
Tesla is experiencing a significant decline in annual sales within China, the largest electric vehicle (EV) market globally. Data from November indicate a drop in retail sales compared to the same month in the previous year. The situation has raised concerns among experts, who anticipate that worsening conditions may persist if the company fails to adapt.
November Sales Figures
In November, Tesla delivered 73,145 vehicles to its Chinese customers. This figure represents a decrease of 345 units from the 73,490 vehicles delivered in November 2024, according to the Chinese Association of Automobile Manufacturers.
- November 2025 Sales: 73,145 vehicles
- November 2024 Sales: 73,490 vehicles
- Year-to-date Sales (through November 2025): 531,855 vehicles
Challenges Ahead for December
To prevent concluding 2025 with an annual sales decline, Tesla must achieve record-breaking performance in December. The automaker needs to deliver over 125,000 vehicles in that month. This target exceeds the company’s best-ever monthly performance of 82,927 deliveries recorded in December 2024.
Even if Tesla shifted all production from its Giga Shanghai factory to fulfill domestic orders, the company would still fall short by more than 30,000 units. Achieving this ambitious goal seems increasingly unlikely.
Market Competition and Customer Impact
The decline in Tesla’s market share could lead to reduced service quality and longer wait times for customers. As the automaker’s popularity wanes, the resale values of Tesla vehicles could diminish, negatively impacting owners. Moreover, stagnant sales may slow the overall acceptance of electric vehicles, since consumers could view Tesla’s aging product lineup as indicative of EV limitations, not specific internal challenges.
Competitors Gaining Ground
- Xiaomi: 175% sales growth
- Xpeng: 70% sales growth
Competitors like BYD, Xiaomi, and Xpeng are experiencing robust sales increases, highlighting the challenges Tesla faces in the evolving market. Tesla’s models, the Model 3 and Model Y, are now six and nine years old, respectively, and they are encountering tough competition.
Quality Concerns and Recalls
Tesla has faced scrutiny over quality issues, particularly with the Cybertruck and a recent recall of 10,000 Powerwall 2 units due to fire risks. This recall left some customers without backup power for extended periods, compounding the concerns associated with Tesla’s service and product reliability.
As experts predict worsening conditions for Tesla, the pressure is mounting for the company to innovate and respond to the dynamic landscape of the Chinese electric vehicle market.
