Tesla's April deliveries drop 26% in China

Tesla’s Shanghai Gigafactory saw a 25.8% drop in deliveries in April 2025 compared to March 2025, with 58,459 Model 3 and Model Y units delivered.

This included both domestic and export sales, reflecting a 6% year-on-year decline.

The drop follows a significant increase in March 2025, when deliveries surged by 157% to 78,828 units due to the ramp-up in production of a refreshed Model Y.

In February 2025, the factory recorded its lowest monthly sales since July 2022, with only 30,688 units sold.

The company faces growing competition in China as local electric vehicle makers introduce new models and lower their prices.

For the first quarter, Shanghai’s deliveries totaled 172,754 units, a 22% year-on-year drop and the lowest quarterly figure in three years.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Tesla’s first-mover advantage erodes amid China’s homegrown EV revolution

Tesla’s current struggles in China represent a stark reversal from its early position as a pioneering force in the world’s largest EV market.

While the company had successfully established its Shanghai Gigafactory in record time (just 357 days from construction to delivery) and enjoyed significant government support as the first wholly foreign-owned car plant in China 1, its market share has now declined from 11.1% to 10.3% 2.

Chinese consumers are increasingly favoring homegrown brands, which now control approximately 70% of domestic EV sales 3, with BYD overtaking Tesla as the dominant player in China’s electric vehicle landscape 4.

Tesla’s limited model range, primarily Model 3 and Model Y, contrasts with the diverse offerings from local manufacturers like BYD, which presents a comprehensive lineup targeting various market segments 2.

2️⃣ Cost efficiency and innovation battles redefine competitive advantage

The competitive dynamics in China’s EV market have fundamentally shifted from being technology-driven to cost-efficiency focused, creating challenges for established players like Tesla.

Chinese manufacturers now produce EVs at costs approximately 25% lower than global competitors while maintaining comparable quality standards 5, putting significant pressure on Tesla’s pricing power and profit margins.