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Home World News

Tesla’s China-Made EV Sales Drop 49% in February Amid Intensifying Competition

March 4, 2025
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Tesla's China-Made EV Sales Drop 49% in February Amid Intensifying Competition
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Tesla’s (TSLA, Financials) China-made electric vehicle sales fell 49.2% year-over-year in February to 30,688 units, marking the lowest monthly sales since August 2022, according to the China Passenger Car Association.

With 93,926 China-made cars sold worldwide in the first two months of 2024, Tesla sold 28.7% less than in the same time last year. The change in the Lunar New Year holidaywhich happened in late January this year instead of Februaryand a temporary stoppage of Model Y manufacturing owing to upgrades helped to explain the fall.

Chinese electric car producers are posing more and more challenge for Tesla. Driven by great demand for its Dynasty and Ocean series, BYD (BYDDF, Financials) recorded a 90.4% year-over-year rise in February sales, hitting 614,679 units. Under less than $10,000, the business has unveiled low-cost smart electric cars that drive a price war in China’s auto industry. Other manufacturers, notably Geely (GELYY, Financials) and Leapmotor, have followed with equally reasonably priced models.

Though Chinese rivals have introduced at least six new models in the previous year, Tesla’s Model Y was the best-selling automobile in China in 2023 and early 2024. Later this year, Xiaomi (XIACY, Financials) is likely to unveil its YU7 crossover, which will be a major rival according to experts. Tesla also ships China-made cars to Europe, where January sales fell 45%.

Late February saw Tesla release an Autopilot software upgrade in China in an attempt to increase demand, adding city navigation tools. The firm recently started delivering a revised Model Y.

Originally introduced in April as a rival to Tesla’s Model Y and Toyota’s (TM, Financials) RAV4, Nio’s (NIO, Financials) Onvo L60 sold 4,049 units in February.

This article first appeared on GuruFocus.

Tags: financialsTesla
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