Tesla Hits Ceiling In China? 2025 Sales Slump Could Mark A First For EV Giant
The struggles for Tesla Inc (NASDAQ:TSLA) in 2025 continue with sales in China continuing to see pressure. A new report reveals year-to-date totals that make Tesla's first annual sales drop in the country almost certain.
Tesla Sales Down In China
Tesla saw soaring demand in the U.S. in the third quarter thanks to the expiration of the federal EV tax credit. Demand in the U.S. and other parts of the world has been a key theme for Tesla this year.
In China, Tesla has seen many months of sales declines as the company faces consumer demand issues and increasing competition from the likes of BYD Company ADR (OTC:BYDDY)(OTC:BYDDF) and others.
New data from the China Association of Automobile Manufacturers shows Tesla having retail sales of 73,145 vehicles in the country for the month of November, as reported by Electrek.
The good news is that this is only a small decline from the 73,490 vehicles sold in the country in November 2024. The bad news is that the decline in domestic sales in China comes as other auto companies are reporting strong growth.
The even worse news for Tesla is that its year-to-date domestic sales in China are now 531,855 vehicles. Against a 2024 total of 657,105 vehicles sold in the country, Tesla now faces the near-impossible task of selling 125,520 vehicles to customers in China for the month of December to avoid a year-over-year sales decline.
Tesla Needs Record For Growth
The 125,520 vehicle sales figure for December is nearly impossible for Tesla, given its current record month for retail sales is 82,927 units in December 2024.
Tesla's best wholesale figure in China, which includes export vehicles was around 94,000 vehicles in December 2023. This means that if Tesla kept all the vehicles it produced in China in December and kept any from being exported, it would still miss the year-to-date total it needs to have growth.
Tesla is now facing the likelihood that it will have its first-ever annual sales decline for domestic sales in China in 2025.
Benzinga previously shared that Tesla is also seeing year-over-year declines for wholesale sales in China, which include domestic and exports. Year-to-date, wholesale sales stand at 754,561 units through November, down 8.3% year-over-year.
Rival BYD is seeing strong growth for exports from China, hitting a record 131,935 exports in November, up 325.9% year-over-year.
Tesla's struggles in China could point to weak demand in China and also neighboring regions where vehicles produced at Tesla's Shanghai factory are shipped.
Tesla and its investors could be ready for 2025 to end soon and look to a new year to get things back on track.
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