Tesla Faces Declining Sales in China as Domestic Competition Grows

January sales of Tesla's China-made vehicles dropped 11.5% year-over-year, with rivals like BYD significantly outpacing the U.S. automaker.

Tesla sold 63,238 vehicles in China in January 2025, marking an 11.5% decline compared to January 2024, and a 32.6% drop from December 2024.
Chinese automaker BYD reported a 47% year-over-year increase in sales for January, selling 296,446 vehicles, further highlighting Tesla's challenges in the market.
Tesla introduced a refreshed Model Y in China and extended a zero-interest, five-year loan program to boost sales, but these measures have yet to yield significant results.
Global sales of Tesla vehicles also declined in key European markets, with January registrations dropping 59% in Germany, 63% in France, and 12% in the UK year-over-year.
Analysts suggest Tesla's lack of an affordable mass-market EV and CEO Elon Musk's controversial public image may be contributing to the company's broader sales struggles.