Tesla Sales In China Tumble 49% In February – CleanTechnica

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Last Updated on: 5th March 2025, 11:10 am

According to CnEVPost, Tesla China sold 30,688 cars in February 2025. That’s 51% fewer than Tesla sold in January and 49% fewer than it sold last February. In January and February of this year, Tesla China sold a total of 93,926 vehicles, including exports — a 28.74% year-on-year decrease. While that may seem like troubling news, CnEVPost attributes the lower sales numbers to several factors, including the usual decrease in sales in China during the annual New Year holiday, which this year took place between January 28 and February 4. Last year, the holiday was February 10 to February 17. The new year celebration usually brings a significant hit to production and deliveries.

In addition, Tesla China’s sales decline in February may also be due to production line adjustments at its Shanghai factory. On January 15, Bloomberg reported that Tesla planned to suspend part of its production lines in Shanghai that make its revamped Model Y for about three weeks during the Chinese New Year to better optimize the equipment. The shutdown began on January 22 and continued until February 14, and allowed Tesla to more efficiently prepare the production lines to increase production of the newly revise Model Y. Another area of the Shanghai factory which produces the Model 3 sedan was closed from January 26 to February 3. Tesla launched the revamped five-seat Model Y in China on January 10, with deliveries beginning on February 26. The company initially offered two variants it calls the “Launch Series” that gave buyers extra benefits. It began selling the regular version of the revised Model Y in China on March 1 at the same prices as the Launch Series. Interesting….

While Chinese media is offering several reasons for Tesla’s poor performance — especially the part about sales always being affected by the Chinese New Year celebrations — other EV companies in China saw their sales increase dramatically during the same timeframe. Zachary Shahan just wrote about BYD sales soaring more than 160% to 322,846 cars this February, compared to 122,31 cars in the same month last year. Sales grew 92.5% in January and February 2025 combined compared to January and February 2024. “That’s huge year-over-year (YoY) growth when you consider the scale BYD was already at!” he wrote. In addition, XPENG sales in February increased by 570%. Yes, the Chinese New Year was later last year, which distorts the picture somewhat, but BYD, XPENG, and NIO are setting new sales records while Tesla appears to be stuck in the doldrums.

One feature that Chinese auto analysts point to repeatedly is the ability of companies like BYD, XPENG, NIO, and others to iterate new models at an amazing clip. They always seem to have something new and fresh to offer their customers, while, with Tesla, it’s warmed over “same old, same old” year after year after year. It’s as if the company refuses to learn anything about the car business and just soldiers on into the future in the belief that customers will be happy to buy five-, six-, or seven-year-old models in perpetuity while the competition is regularly bringing new products to market.

Every organization reflects the views of its leader, and in this case, Elon Musk has proven over and over again he really cares very little about what others are doing. He believes his ideas are the best that ever could be, which is why we have the Cybertruck instead of a vehicle that competes head to head with other pickup trucks. He may be a brilliant engineer (although, not everyone would agree), but he refuses to alter his views one iota in light of experience. Frankly, that is a recipe for disaster, which is reflected in the company’s recent stock price decline.

Yahoo! Finance has some cautionary news about the prospects for Tesla in the future. It says Bank of America analyst John Murphy has reduced his price target for Tesla to $380 from $490, citing weaker European sales and “sentiment on the brand potentially souring,” among other reasons. Elon Musk’s political antics, which include delivering a gesture generally interpreted as a Nazi salute recently, seem to be affecting both his and Tesla’s standing both in Europe and the US. However, that effect is not as pronounced in China, where Musk typically is viewed favorably. But his intimate connection to the White House could become a hindrance, as there is speculation the Chinese government may withhold full FSD approval in China as a bargaining chip in tariff negotiations with the White House, according to a report by the Financial Times. The White House doubled its tariffs on Chinese goods to 20% just this week.

Political issues aside, Tesla’s troubles in China likely come down to more market-based forces. Domestic automakers like BYD and others are making cheaper products that are proving to be quite popular, include technology like autonomous driving features that Tesla can’t match. BYD is offering its own self-driving technology, which it modestly calls “God’s eye,” in its least expensive vehicles that start at under $15,000. God’s eye is offered in three versions, each one more technically sophisticated than the other, but even the base version appears to be more capable than Tesla’s own misleadingly labeled Full Self Driving system, which still requires drivers to be vigilant and ready to take over control of the car at a moment’s notice. Tesla and Musk may be getting squeezed on both sides — with Musk’s connections to the White House during a rising trade war and Tesla’s EVs losing their popularity in the mainland, a trend that’s gaining steam, Yahoo says.

Tesla Backlash

This week, officials in Littleton, Massachusetts, say a fire that damaged seven Tesla Superchargers appears to have been deliberately set, although no one has taken credit for the destruction. According to WBZ News, a Massachusetts man said he had been threatened because he drives a gold Cybertruck. Someone put a profane sticker on the vehicle, and when he posted a photo of it on social media, the man told police he started getting threats online. Over the weekend in Maryland, graffiti was found at a Tesla showroom a day after nearly 300 protesters gathered outside the business to protest Musk and his push to slash government spending. Police said the graffiti said “No Musk” with a sign that resembles a swastika. In Northern Colorado last month, police arrested a suspect who was wanted for allegedly placing incendiary devices at a Tesla showroom.

In Alabama, Yoni Menaker, who is associated with Blue Angels Roofing, wrote on Facebook, “I have a dilemma. I started to lose customers because I have [a] Cybertruck. I got some bad reviews, and I am not sure what to do.” In the post, which has since been deleted, he said he loves the vehicle and “it’s the best truck” he’s ever had. He claims to have lost $70,000 worth of business because he drives the Cybertruck. Remember, that was in Alabama. A medical spa owner in Massachusetts told NBC Boston in February he has faced harassment and client cancellations after purchasing a gold-wrapped Cybertruck to promote his business. The Cybertruck, with its unique design, has become an easy target for people annoyed with Musk’s antics.

While EV sales in the US were up 7.3% in 2024, Tesla’s sales fell more than any other manufacturer, according to Cox Automotive. Sales figures in other regions, including Europe and China, have also trended downward. The company has previously faced stock dips, production challenges, and PR crises, only to bounce back. Despite declining sales, it still commands a dominant share in the US EV market, but it is now facing more competition from automakers like Hyundai, Ford, General Motors, BMW, and Rivian, all of which are seeking to expand their EV market share (or keep expanding it, as the case may be). Consumers who once flocked to Tesla for cutting-edge tech now have more choices available to them.

Musk’s increasingly polarizing persona may be driving potential customers away. For better or worse, the Tesla brand is fused with Musk himself. As long as he remains at the center of controversy, there will be questions about whether any slump is just a speed bump or a warning of something bigger coning down the road. If the drop in Tesla sales in China is due to something more than the seasonal effect of the Chinese New Year celebration, Tesla could find itself on the precipice of a steep decline brought on by Musk’s refusal to bring new models to market in a timely fashion — something that is standard operating procedure in the auto industry and has been raised to a high art by Chinese automakers. It is possible Elon doesn’t even know what he doesn’t know, but one thing seems certain — pigheadedness is not a skill customarily taught in B School.