Tesla has faced significant declines in both domestic sales and exports from its Shanghai plant, as new data unveils sobering figures for February 2025. The electric vehicle (EV) manufacturer exported only 3,911 cars from the plant, representing a staggering decrease of 87% compared to the 30,224 units exported during the same month last year. This decline is also stark when compared to January 2025, when exports were at 29,535 units, marking an 86.8% drop.
Domestically, Tesla sold 26,777 vehicles within China during February, which is down 11.2% year-on-year and down 20.6% from January. Notably, this marks the lowest retail sales figures since October 2022, when sales totaled 17,200 units. Overall, Tesla's sales—including both domestic and export—amounted to just 30,688 cars for the month, down 49.2% from the same period last year and 51.5% from January 2025, according to the China Passenger Car Association (CPCA).
The recent figures have raised concerns among analysts, particularly as the company grapples with the impacts of seasonal changes, such as the Chinese New Year holiday, which can disrupt industrial production and consumer activity. This year's festival occurred from January 28 to February 4, causing noted fluctuations. Tesla’s production strategy, which typically prioritizes exports during the first half of the quarter, was also impacted. This strategic timing highlights the challenge Tesla faces with optimizing production to meet both domestic and international demand.
While the company recorded low export and retail sales, the Chinese market overall witnessed strong growth for new energy vehicles (NEVs). Despite Tesla's downturn, NEV retail sales rose to 686,000 units during February 2025, up 79.7% year-on-year, though they decreased by 7.8% from January. Specifically, battery electric vehicle (BEV) sales reached 427,000 units, showing a year-on-year growth of 94.4% and remaining steady from the previous month.
Examining January and February, Tesla's overall sales figures remain troubling, with total units sold reaching 93,926—28.7% lower than the 131,812 units sold during the same period last year. The company also exported 33,446 units from its Shanghai facility over these two months, down 46% from 61,790 units year-on-year.
The updated Tesla Model Y, launched earlier this year, has been perceived as one potential avenue for recovery. Deliveries commenced on February 26, with the facelifted model featuring enhancements like a 62.5 kWh battery from CATL and promising up to 593 km of range. Despite this promising launch, consumer response has been measured; as of March 7, reports indicated the Model Y reached 200,000 orders, but many of these come with refundable deposits. Current wait times for various models vary significantly, with estimates ranging from 2-4 weeks for the rear-wheel-drive version to 6-10 weeks for the long-range all-wheel-drive variant.
Looking at the competitive immediate future and Tesla's strategic responses, questions arise about the pressures faced from domestic brands and their rapidly growing market share. Inevitably, the path forward appears: Can Tesla adjust to the shifting sands of production and consumer demand? With new models and potential market strategies, the automaker seeks to regain lost footing during this unpredictable period.
Tesla's recent challenges reflect not just internal hurdles but also broader market dynamics within China’s automotive sector. The company contributes about 3.90% of the country’s total NEV retail sales and 6.27% of the BEV retail sales. These statistics re-contextualize Tesla’s declining figures within the frame of rapid industry growth. Data reveals the anticipated growth potential of electric vehicles as consumer preferences shift, highlighting the urgency for Tesla to innovate and recalibrate its business strategies.