Tesla's Chinese-made electric vehicle (EV) sales fell 6% year-on-year in April, a seven-month downward trend, according to Reuters.
The American auto giant faces fierce competition from Chinese competitors and has a decline in reputation in Europe.
Delivery of Model 3 and Model Y vehicles made in China, including exports to Europe and sales to China, totaled 58,459 units in April, a 25.8% decrease from March, according to the China Passenger Car Association (CPCA).
Sales declines in Europe were particularly noticeable, with consumers turning down Tesla due to political affiliation of CEO Elon Musk. This sentiment has also affected the brand's performance in the United States.
In response to sales declines in these major markets, Tesla is seeking to expand to new territories such as India and Saudi Arabia.
However, Chinese electric vehicle brands are also paying attention to the potential growth of these markets.
Tesla's Chinese rival BYD experienced a surge in global passenger car sales, up 19.4% year-on-year to 372,615 units in April.
The marine and dynasty lineup of electric vehicles and plug-in hybrids contributed to its success.
Additionally, about 12 new electric crossover models unveiled at the Shanghai Auto Show can compete with Tesla's Model Y, which may exacerbate the challenges facing U.S. EV experts in China and globally.
To maintain its market share in China, Tesla plans to start mass production of a more affordable version of the model Y in 2026.
In addition, Tesla's automobile revenue fell 20% in the first quarter of 2025, with revenue falling from $17.38 billion in the previous year to $13.97 billion.
“Tesla’s Chinese electric vehicle sales fell 6%, initially created and released by GlobalData-owned brand Just Auto.
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