Tesla has reached a cumulative total of 4 million vehicles sold in China, produced at its Shanghai Gigafactory. However, the company is experiencing its first annual sales decline in this key market for 2025. November deliveries fell slightly year-over-year, making it unlikely to match last year's figures.
Tesla marked a significant milestone by reaching 4 million cars sold in China, with production centered at the Shanghai Gigafactory, which serves as a pivotal hub for the company's expansion into Asia and Europe. This achievement comes amid intensifying competition from low-cost rivals like BYD, which is pressuring prices in the electric vehicle race.
Despite the cumulative success, Tesla faced a setback in 2025, recording its first annual sales decline in China, the world's largest EV market. In November 2025, the company delivered 73,145 vehicles to Chinese customers, a drop of 345 units from the 73,490 delivered in November 2024, according to the Chinese Association of Automobile Manufacturers and reports from Electrek.
Through November 2025, Tesla's year-to-date retail sales in China totaled 531,855 vehicles, well below the 657,105 achieved for the full year of 2024. To avoid an annual decline, Tesla would need to deliver over 125,000 vehicles in December—surpassing its record monthly high of 82,927 from December 2024. Even if all output from Giga Shanghai were directed domestically, halting exports, the company would fall short by more than 30,000 units.
This struggle contrasts sharply with competitors' growth: Xiaomi reported 175% year-over-year increase, while Xpeng saw 70%. Tesla's lineup, including the six-year-old Model 3 and nine-year-old Model Y, is aging without signs of next-generation models. One Electrek commenter noted, "It's going to continue getting worse and worse as Tesla's entire lineup ages and ages with zero sign of next generation models even under development."
The decline could impact customers through reduced service quality and resale values, while broader EV adoption faces potential slowdowns if Tesla's challenges are misattributed to the technology itself. Tesla has also dealt with separate issues, such as recalling 10,000 Powerwall 2 units due to fire risks and criticism over Cybertruck quality and service delays.
