Share Tesla’s domestic sales in China have plunged to their lowest level in three years, marking a significant setback in the world’s most competitive electric vehicle market. The company sold just 26,006 vehicles in October. This figure represents a sharp 35.8% drop compared to the previous year, according to the China Passenger Car Association. The disappointing performance caused Tesla’s market share to fall dramatically to a three-year low of just 3.2%, down from 8.7% in September. The previous month’s sales (71,525 units) were boosted by the temporary lift from the new, longer-wheelbase Model Y L. The sales slump highlights the mounting challenge from local competitors. Chinese tech giant Xiaomi demonstrated powerful momentum, achieving record sales of 48,654 units for its SU7 sedan and YU SUV models in October. This surge occurred despite safety scrutiny following recent accidents. Broader market factors also contributed to the contraction. Overall car sales in China declined, driven by weakening consumer sentiment due to reduced government subsidies and tax breaks. A silver lining came from Tesla’s Shanghai gigafactory export performance. Exports of China-made vehicles rose to 35,491 units, hitting a two-year high. While exports maintain production volume, they do not ease the pressure on Tesla’s core challenge: winning over consumers in China’s rapidly evolving domestic EV battleground. For latest tech stories go to TechDigest.tv Share this: