In October 2025, Xiaomi's YU7 crossover surpassed Tesla's Model Y sales in China, contributing to Tesla's weakest monthly performance in years. Tesla delivered 26,006 Model 3 and Model Y vehicles, down 36 percent year-on-year, while Xiaomi sold 48,654 units overall. This marks a significant shift in the competitive EV market.
October 2025 proved challenging for Tesla in China, its second-largest market. The company recorded 26,006 deliveries of its Model 3 and Model Y combined, a 36 percent decline from the previous year and the lowest figure in two to three years. This followed a strong September, when sales reached 71,525 units after the launch of the Model Y L, a longer-wheelbase, six-seat version exclusive to China. However, demand cooled rapidly the following month.
Xiaomi, entering the EV space aggressively, achieved record sales of 48,654 vehicles, with its YU7 SUV alone accounting for 33,662 units—outpacing Tesla's Model Y for the first time. Earlier in the year, Xiaomi's SU7 sedan had already surpassed the Model 3. These figures highlight Xiaomi's growing presence as a serious rival, offering newer, more affordable options tailored to Chinese consumers.
Tesla's market share in China's EV sector shrank to 3.2 percent in October, down from 8.7 percent in September and the lowest in over three years. Despite the domestic sales dip, Tesla's exports from China-made vehicles rose to 35,491 units, a two-year high. Broader market conditions contributed, as China's overall car sales fell amid weakened consumer sentiment and reduced government subsidies and tax breaks.
The slowdown underscores intensifying competition in the world's largest auto market, where Tesla's aging lineup faces pressure from fresher entrants like Xiaomi.