In February 2025, Tesla’s Shanghai plant exported 3,911 vehicles, marking an 87% decrease from the 30,224 units exported in the same month the previous year. This figure also represents an 86.8% decline from January’s export numbers. Concurrently, Tesla’s retail sales within China totaled 26,777 vehicles, reflecting an 11.2% decrease year-over-year and a 20.6% drop from the previous month.
The export figures for February are the lowest since June 2022, when Tesla exported 968 vehicles from its Shanghai facility. Retail sales within China have not been this low since October 2022, a month in which Tesla sold 17,200 vehicles domestically.
In total, Tesla’s combined domestic sales and exports from China amounted to 30,688 vehicles in February, a 49.2% decrease compared to the same month last year and a 51.5% decline from January. Breaking down the models, the Model Y saw sales of 8,032 units, a 77.8% year-over-year decrease, while the Model 3 recorded 22,656 units sold, representing a 6% decline from the previous year.t
Analysts suggest that the timing of the Lunar New Year holiday, which occurred in late January this year, may have influenced these figures. However, the significant drop in exports and domestic sales also highlights the increasing competition Tesla faces in the Chinese electric vehicle (EV) market. Local manufacturers, such as BYD, have been expanding their market share, offering a diverse range of EVs that cater to various consumer preferences.
In response to the evolving market dynamics, Tesla launched an updated version of the Model Y in China in January, ahead of its release in Europe and the United States. Deliveries of this revamped model began on February 26. Reports from local media indicate that the Model Y has received approximately 200,000 orders in China, though these orders are accompanied by refundable deposits. Current estimated delivery times vary by model, with the rear-wheel-drive version expected within 2-4 weeks and the long-range all-wheel-drive variant anticipated in 6-10 weeks, as per Tesla’s Chinese website.
The facelifted Model Y, equipped with a 62.5 kWh battery supplied by CATL and offering a 593 km CLTC range, starts at 263,500 yuan (approximately $36,400 USD) in China for the rear-wheel-drive version.
Tesla’s performance in the Chinese market is under close observation, especially considering the company’s recent challenges in securing approval for its Full Self-Driving (FSD) technology in China. Chinese regulators have not provided a definitive timeline for approval, which could impact Tesla’s competitiveness against local rivals who are rapidly advancing their autonomous driving technologies.
As the global EV landscape becomes increasingly competitive, Tesla’s strategies in key markets like China will play a crucial role in maintaining its position within the industry.
Stay current with supply chain news on The Supply Chain Report. Free trade resources are available at ADAMftd.com.
#TeslaSalesDecline #ChinaEVMarket #ModelYUpdate #BYDCompetition #LunarNewYearImpact
