Tesla’s (TSLA) China factory shipments fell again in 2025, underscoring mounting pressure on the Elon Musk-led automaker as it grapples with slowing global demand.
The Austin-based carmaker shipped 851,732 vehicles from its Shanghai plant last year, down 7% year over year, according to preliminary data released Monday by the China Passenger Car Association (CPCA). December deliveries totaled 97,171 vehicles, marking just the fourth month in 2025 to show a year-over-year increase.
The data does not break out exports versus domestic sales, though the majority of vehicles produced in Shanghai are sold within China.
While shipments rose sharply from 710.9K vehicles in 2022 to a peak of 947.7K units in 2023, momentum has since reversed. China deliveries slipped to 916.7K vehicles in 2024 before falling further in 2025, marking the second consecutive annual decline, CPCA data showed.
The China slump highlights the broader challenges facing Tesla. While deliveries rebounded in the third quarter as U.S. buyers rushed to purchase EVs ahead of subsidy changes, momentum has since faded as governments scale back policy support.
Tesla (TSLA) disclosed on Friday that it delivered 418,227 vehicles in Q4, down 16% Y/Y and below the consensus estimate for a tally of 423K vehicles. Its global deliveries fell by about 9% in 2025 to 1.64 million vehicles.
Meanwhile, Chinese rival BYD Company (BYDDF) sold the most all-electric vehicles in the world during a calendar year for the first time in the company’s history. BYD reported about 2.26 million fully electric vehicles sold in 2025, up roughly 28% year over year and almost equal to its plug-in hybrid volume.
Shares of Tesla (TSLA) were up 1.55% on Monday.