Tesla is facing its first annual sales decline in China, the world’s largest electric vehicle market. November retail sales dropped compared to the same month last year. The company needs a nearly impossible December performance to avoid finishing 2025 in the red, per Electrek.
What’s happening?
Tesla delivered 73,145 vehicles to Chinese customers in November. The company is down 345 units from November 2024’s 73,490 deliveries, per the Chinese Association of Automobile Manufacturers and as reported by the article.
While the drop may appear relatively small, it signaled deeper trouble in a market where competitors like BYD and Xiaomi have posted record growth.
Tesla’s year-to-date retail sales sat at 531,855 vehicles through November. To match 2024’s total of 657,105 vehicles, the automaker would need to deliver over 125,000 cars in China during December.
That target would exceed Tesla’s best month on record. The company’s highest retail performance, back in December 2024, was 82,927 deliveries. Even diverting every vehicle from Giga Shanghai to domestic customers and halting all exports would leave Tesla short by over 30,000 units.
“It’s going to continue getting worse and worse as Tesla’s entire lineup ages and ages with zero sign of next generation models even under development,” one commenter wrote on Electrek. “You cannot compete forever with two nine and six year old models that were ahead of their time when launched, but have basically sat idle as far as range, charging, or performance is concerned.”
Why is Tesla’s drop important?
The decline affected Tesla customers who may be facing reduced service quality, longer wait times, and diminished resale values as the automaker’s market share shrinks.
Stagnant sales could also slow down the broader adoption of EVs. That is, if consumers begin perceiving Tesla’s aging lineup as representative of electric vehicle limitations rather than the company’s specific challenges. There are many EV options out there when you venture beyond Tesla.
Tesla’s ongoing struggles, however, stand in stark contrast with the otherwise surging Chinese EV market. Xiaomi posted 175% growth while Xpeng grew 70% during the same period. Tesla’s Model 3 and Model Y, now six and nine years old respectively, are facing much stiffer competition in the global marketplace.
Tesla also had to recall 10,000 Powerwall 2 units earlier this year after disabling them remotely due to fire risks. That left some customers without backup power for months. The company has also faced criticism over Cybertruck quality issues and ongoing service delays as production ramped up.
What’s being done about EV adoption?
While Tesla is certainly facing headwinds, the movement to make the switch to EVs continues gaining momentum. Other automakers are expanding their lineups with competitive pricing and new technology.
If you’re considering making your next car an EV, there are several options that fit with your budget and needs. Electric vehicles cut fuel costs and reduce your maintenance expenses. And each new EV on the road can create cleaner air, which can translate to fewer health issues.
Get TCD’s free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD’s exclusive Rewards Club.
