Tesla’s China-made EV sales fall 8.4% in July; Europe slump persists

Tesla’s (NASDAQ:TSLA) China-made electric vehicle sales fell 8.4% year-over-year in July amid mounting competition from lower-priced models launched by local rivals.

Deliveries of its Shanghai-made Model 3 and Model Y vehicles, including exports to Europe and other markets, reached 67,886 units last month, Reuters reported, citing data from the China Passenger Car Association (CPCA). That marked a 5.2% sequential decline in deliveries.

The performance still lags major Chinese rivals by a significant margin. Chinese rival BYD (OTCPK:BYDDF) (OTCPK:BYDDY) shipped 341,030 passenger vehicles in July 2025, compared to 340,799 units in July 2024.

Other local EV competitors, including NIO (NIO) and XPeng (XPEV) also reported higher sales on an annual basis. Nio’s July deliveries gained 2.5% Y/Y, while Xpeng (XPEV) set a new monthly record in July with 36,717 Smart EV deliveries, a 229% year-over-year surge.

Tesla (NASDAQ:TSLA) is also facing mounting pressure in Europe, with July registrations down 86% Y/Y in Sweden, 52% in Denmark, 27% in France, 62% in the Netherlands, and 58% in Belgium, as per official industry data.

Shares of Tesla (TSLA) were up 0.93% premarket on Monday.