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Tesla’s China-Made Shipments Decline for Seventh Straight Month Amid Global Sales Slump

by Team Lumida
May 7, 2025
in Markets
Reading Time: 5 mins read
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Photo by Tesla Fans Schweiz on Unsplash

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Key Takeaways:

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  • Tesla’s Shanghai factory shipped 58,459 Model 3 and Model Y vehicles in April, a 6% year-over-year decline, marking the seventh consecutive monthly drop in China-made shipments.
  • Globally, Tesla’s Q1 sales hit a three-year low, with declining demand attributed to CEO Elon Musk’s controversial political involvement, which has sparked protests in the U.S. and Europe.
  • In China, Tesla faces stiff competition from domestic EV leader BYD, which achieved record sales in April and is on track to meet its 2025 target of 5.5 million deliveries.
  • Tesla’s struggles extend to other markets: April sales in France totaled just 863 vehicles, while Australian sales plummeted 76% year-over-year to 500 units, as competition from Chinese EV brands intensifies.
  • Despite Tesla’s challenges, China’s broader new-energy vehicle (NEV) market grew 42% year-over-year in April, with 1.14 million units sold, highlighting the sector’s overall strength.

What Happened?

Tesla’s China-made shipments continued their downward trend in April, with a 6% year-over-year decline to 58,459 units. The company did not disclose the breakdown between domestic sales and exports. This marks the seventh consecutive month of declining shipments from Tesla’s Shanghai factory, reflecting growing challenges in its largest market.

Globally, Tesla’s sales have also slumped, reaching a three-year low in Q1 2025. The decline is partly attributed to CEO Elon Musk’s controversial political activities, which have alienated some customers and sparked protests in key markets like the U.S. and Europe.

In China, Tesla is losing ground to domestic competitors like BYD, which posted record sales in April and is on track to meet its ambitious delivery target for the year. Tesla is also facing intensified competition in other markets, with sales in France and Australia dropping sharply year-over-year.


Why It Matters?

Tesla’s declining sales highlight the growing challenges the company faces in maintaining its dominance in the global EV market. In China, the world’s largest EV market, Tesla is struggling to compete with domestic players like BYD, which are rapidly gaining market share.

The broader decline in Tesla’s global sales underscores the impact of external factors, including CEO Elon Musk’s political controversies and increasing competition from both established automakers and new entrants, particularly from China.

While the overall NEV market in China continues to grow, Tesla’s inability to capitalize on this momentum raises questions about its long-term competitiveness in key markets.


What’s Next?

Tesla will need to address its declining market share in China by enhancing its competitive positioning against domestic rivals like BYD. This could involve price adjustments, new product launches, or localized strategies to regain consumer trust.

Globally, Tesla must navigate the fallout from Musk’s political controversies and focus on rebuilding its brand image to attract customers in markets like Europe and Australia.

The company’s Q2 results will be closely watched to assess whether Tesla can reverse its sales slump and regain momentum in the increasingly competitive EV landscape.


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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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