Tesla China EV Sales Fall 10% October Amid Price War

Tesla's electric vehicle sales in China declined by 9.9% year-over-year in October 2025, with 61,497 units sold, reversing a brief growth seen in September. The Shanghai Gigafactory, which produces Model 3 and Model Y vehicles for both domestic sales and exports to regions like Europe and India, experienced a sharp 32.3% drop in production compared to the previous month. This decline highlights broader challenges in Tesla's Chinese operations amid intense competition and an ongoing price war in the world's largest EV market, with Chinese rivals such as NIO, XPeng, and BYD posting mixed results. Despite Tesla's struggles, the company maintains a strong financial position with a market capitalization around $1.56 trillion. Global factors, including the end of U.S. tax subsidies and sluggish demand in Europe, are also weighing on Tesla's overall sales momentum, pointing to a difficult fourth quarter and potential global sales contraction. China remains critical for Tesla, accounting for roughly 36% of its worldwide vehicle sales through the first three quarters of 2025.