Tesla’s China retail sales fall 12.4% in August, marking third straight decline: A Practical Look

• Tesla's China retail sales totaled 50,047 vehicles in August, with sales for the first 8 months down 12.44%.
• Shanghai factory exports rose 38.71% in August, with cumulative exports this year exceeding domestic retail sales.

Tesla (NASDAQ: TSLA) posted a third consecutive year-on-year decline in China retail sales in August, while exports continued to support overall sales growth at its Shanghai factory.

The US electric vehicle (EV) maker sold 50,047 vehicles at retail in China in August, down 12.43% year-on-year, according to data released Tuesday by the China Passenger Car Association (CPCA).

The decline narrowed from July's 32.91%, while sales rose 83.67% month-on-month. Still, it was the company's weakest August for China retail sales since 2022.

Tesla's cumulative China retail sales totaled 316,251 vehicles in the first 8 months, down 12.44% year-on-year. February and May were the only months this year in which domestic sales increased from a year earlier.

Tesla also underperformed China's broader battery electric vehicle (BEV) market. Retail sales of BEVs in China totaled 698,000 vehicles in August, up about 1% year-on-year.

Based on those figures, Tesla held a 7.17% share of China's BEV retail market, below 8.33% a year earlier but above July's 4.21%.

Its share of the broader new energy vehicle (NEV) market, which includes plug-in hybrids, stood at 4.98%, down from 5.19% a year earlier.

Exports and domestic sales continued to diverge. The Shanghai factory exported 36,119 vehicles in August, up 38.71% year-on-year but down 45.55% from July's record 66,330.

The factory's cumulative exports reached 331,443 vehicles in the first 8 months, up 114.70% year-on-year. Exports accounted for 51.17% of wholesale sales during the period, compared with 29.94% a year earlier.

That means Shanghai factory exports have exceeded Tesla's domestic retail sales so far this year, underscoring its growing reliance on overseas markets for overall sales growth.

Previously released data showed Tesla China's August wholesale sales totaled 86,166 vehicles, up 3.57% year-on-year while down 7.92% month-on-month. The figures include domestic retail sales and Shanghai factory exports.

Cumulative wholesale sales reached 647,694 vehicles in the first 8 months, up 25.63% year-on-year. Higher exports offset the decline in domestic retail sales and drove overall growth.

Facing pressure on domestic sales, Tesla introduced cash incentives for the final weeks of the third quarter to spur deliveries of inventory vehicles.

The company announced on September 7 that customers in China who purchase and take delivery of inventory Model Y vehicles by September 30 can receive a 10,000 yuan ($1,475) reduction in their final payment. The discount for inventory Model 3 vehicles is 5,000 yuan.

Other offers include paint option benefits, insurance subsidies and financing plans for selected models, depending on the vehicle, configuration and order terms.

Tesla launches quarter-end inventory offers in China as local deliveries decline - CnEVPost

The limited-time promotion covers the final weeks of the third quarter, offering discounts of 10,000 yuan on the Model Y and 5,000 yuan on the Model 3.

Tesla

Sept 7, 2026

($1 = 6.7804 yuan)