Tesla's China-Made EV Sales Plummet 15% in May

Tesla's China-made EV sales fell 15% year-over-year in May. The company's net sales break down by activity as follows: sale of automotive vehicles (74.2%), services (10.8%), sale of energy generation and storage systems (10.3%), automotive credits (2.8%), and automotive leasing (1.9%). The group has 8 manufacturing sites in the US, China, and Germany. Net sales are distributed geographically as follows: the US (48.9%), China (21.4%), and other (29.7%).

Title: Tesla's China-Made EV Sales Decline as Chinese Rivals Surge

Tesla's China-made electric vehicle (EV) sales fell by 15% year-over-year in May 2025, according to recent financial reports. The company's net sales break down by activity as follows: sale of automotive vehicles (74.2%), services (10.8%), sale of energy generation and storage systems (10.3%), automotive credits (2.8%), and automotive leasing (1.9%). The group has 8 manufacturing sites in the US, China, and Germany. Net sales are distributed geographically as follows: the US (48.9%), China (21.4%), and other (29.7%).

This decline in sales comes amid a significant surge in EV sales by Chinese manufacturers. In May 2025, Li Auto, XPeng, and NIO delivered nearly 98,000 vehicles combined, a 50% increase compared to the previous year [1]. This surge highlights the rapid growth of China's EV sector, driven by competitive pricing, expanding product lines, and strong domestic demand.

Tesla's sales in China have been declining, with the company delivering about 58,000 vehicles in April 2025, down 6% from the previous year. More concerning, Tesla's retail sales to Chinese customers in the first eight weeks of Q2 2025 dropped 23% year-over-year [1]. Strained U.S.-China trade relations have led Chinese buyers to favor domestic brands, with Tesla selling 1.8 million cars globally in 2024, a slight decline from 2023.

Despite the challenges, Tesla's upcoming robotaxi business, set to launch in June 2025, could provide a new growth avenue. Investors remain optimistic, with Tesla's stock rising nearly 100% over the past 12 months, fueled by expectations that AI-driven self-driving technology will unlock fresh demand.

The success of Chinese EV makers underscores broader trends in the industry. Domestic manufacturers are benefiting from government support, including subsidies and infrastructure investments like charging networks. For instance, BYD's extensive lineup, which includes plug-in hybrids alongside EVs, caters to a wide range of consumers, helping it maintain its lead. In contrast, Tesla's focus on premium models may be limiting its appeal in a price-sensitive market.

Economically, the rise of Chinese EV companies is boosting local supply chains, from battery production to software development. However, it also poses challenges for global competitors like Tesla, which may need to adjust pricing or introduce more affordable models to regain market share. Regulatory pressures, such as stricter emissions standards worldwide, are likely to further accelerate EV adoption, giving an edge to companies with scalable production.

For EV enthusiasts, the competition is a win. Chinese manufacturers are driving innovation, offering vehicles with advanced features like longer ranges and faster charging at competitive prices. For instance, XPeng's recent models boast ranges exceeding 400 miles per charge, rivaling Tesla's offerings. Meanwhile, Tesla's robotaxi initiative could redefine urban mobility, potentially reducing ownership costs through shared autonomous fleets.

The global EV market is at a pivotal moment. Chinese manufacturers are setting the pace, but Tesla's technological advancements could still shift the balance. For now, consumers have more choices than ever, and the race for EV supremacy is far from over.

References
[1] https://evxl.co/2025/06/01/chinese-ev-giants-outpace-tesla/
[2] https://thedriven.io/2025/06/03/tesla-rebounds-in-may-as-model-y-records-best-month-of-sales-in-more-than-a-year/amp/