Tesla’s China-made vehicle sales grew by just 3.6% year-over-year in August. This figure marks a sharp decline from the 38% growth recorded in July.
The China Passenger Car Association reported total sales of 86,166 units for the Shanghai-produced Model 3 and Model Y. Total sales, which include exports, fell 7.9% compared to the previous month.
Domestic rivals are eroding Tesla's momentum by launching more affordable, feature-rich electric vehicles. Increased local competition is driving Chinese automakers to expand aggressively into international markets. Tesla also faces inconsistent sales performance across its primary European markets.