Tesla's sales in China fell to 3-year low last month
What's the story
Tesla's sales in China fell to a three-year low of 26,006 vehicles in October. The figure marks a staggering 35.8% decline from the same period last year. The sharp drop is attributed to weak demand in the highly competitive Chinese market. In September, Tesla started deliveries of its Model Y L, a longer-wheelbase and six-seat version of its bestselling Model Y SUV.
Market dynamics
Tesla's market share drops to 3.2%
Tesla's market share in China's electric vehicle (EV) sector also took a hit, dropping to just 3.2% in October from September's 8.7%. This is the lowest it has been in over three years. However, on a positive note, the company's exports of China-made vehicles reached a two-year high of 35,491 units last month, according to data from the China Passenger Car Association.
Competitive landscape
Xiaomi's SU7 and YU7 posted record sales last month
Tesla is facing stiff competition in China, its second-biggest market after the US. Xiaomi's SU7 sedan and YU7 SUV have posted record sales of 48,654 units last month despite safety concerns over accidents involving its cars. The fierce competition is further compounded by a general decline in consumer sentiment amid reduced government subsidies and tax breaks.