Tesla, Inc. (TSLA.US) saw a 8.4% decrease in sales of electric cars produced in China in July, and the sluggish trend in the European market continues.

Due to the intensified competition pressure brought by domestic competitors launching low-priced models, the sales of electric vehicles produced by Tesla, Inc. (TSLA.US) in China in July decreased by 8.4% year-on-year. Data from the China Passenger Car Association (CPCA) shows that last month, the delivery volume of Model 3 and Model Y models (including exports to Europe and other markets) produced at Tesla, Inc.'s Shanghai factory reached 67,886 units, a decrease of 5.2% compared to the previous month. This performance still lags significantly behind other mainstream competitors in China. Rival BYD Company Limited's passenger car sales in July 2025 reached 341,030 units, slightly higher than the 340,799 units in July 2024. Other Chinese electric vehicle companies, including NIO Inc. Sponsored ADR Class A (NIO.US) and Xiaopeng (XPEV.US), also reported year-on-year growth in sales. NIO Inc. Sponsored ADR Class A saw a 2.5% year-on-year increase in delivery volume in July; while Xiaopeng set a new monthly record with 36,717 smart electric vehicles delivered, a staggering 229% increase year-on-year. Tesla, Inc. is also facing increasing pressure in the European market. Official industry data shows that in July, Tesla, Inc.'s registration volume in Sweden decreased by 86% year-on-year, in Denmark by 52%, in France by 27%, in the Netherlands by 62%, and in Belgium by 58%. As of the time of writing, in pre-market trading on Monday, Tesla, Inc.'s stock price rose by 2.10%.