Key facts
- Tesla's China-made EV sales grew 3.6% year-on-year in August.
- Sales reached 86,166 units in August, including exports.
- This is a significant slowdown from a 38% year-on-year increase in July.
- Sales decreased by 7.9% month-on-month in August.
- Tesla's share of China's battery EV market fell to 6.6% in the second quarter.
Tesla's sales of China-made electric vehicles, including exports, rose 3.6% year-on-year in August to 86,166 units. This marks the tenth consecutive month of growth but represents a significant deceleration from the 38% increase seen in July and a 7.9% month-on-month decline. The slowdown occurs as Tesla faces intensified competition in China from domestic rivals introducing more affordable EVs and as it pushes into overseas markets to compensate for weaker domestic demand.
August registration data also revealed mixed performance for Tesla in Europe, with strong sales in France and Denmark contrasting with weaker results in several other European countries. Globally, exports constituted more than half of the vehicles produced at Tesla's Shanghai factory in the second quarter, a first for the company. However, Tesla's share of China's battery EV market has shrunk to 6.6% in the second quarter, down from a peak of over 15% in 2020. The company is also navigating China's evolving automotive safety regulations, following a significant recall announced in late August that included Tesla and several Chinese automakers.