(Yicai) Nov. 11 -- Tesla’s sales in China sank to their lowest point last month since October 2022, according to the latest data. Industry insiders attributed the disappointing performance to a combination of seasonal factors and growing competition.

Tesla shipped 26,000 vehicles in China in October, a 35.7 percent drop from a year ago and a 63.6 percent dive from the month before, according to automotive information platform Dangchedi. This caused the US electric car startup’s ranking to fall sharply from seventh place in September to 27th.

Sales of both the Model Y and Model 3 plummeted. Shipments of the Model Y plunged 62 percent in October from the month before to 19,488 units, sliding into 15th place from 2nd place. While that of the Model 3 sank 68 percent to 6,518 autos, slipping 94 places down the rankings to the 111th spot.

The drop in sales might be related to Tesla’s factory holiday schedule and the week-long National Day break, sources told Yicai. In the past three years, the Austin-based firm’s sales in October have always been noticeably lower than in September. In 2024, there was a 43.9 percent drop and in 2023 a 34.2 percent dive.

New energy vehicle makers are also striving to meet their annual sales targets before the purchase tax breaks expire at the end of the year. This has led to stiff competition and squeezed Tesla’s market share, industry insiders said.

Tesla’s share of China’s NEV market in terms of sales tumbled to 2 percent in October, down from 3.4 percent a year ago and 5.5 percent in September, according to the latest data from the China Passenger Car Association.

China’s electric vehicle market continued to grow rapidly last month. In October, NEVs accounted for 57.2 percent of China’s passenger car sales, up 4.3 percentage points from a year earlier, according to CPCA data.

Editor: Kim Taylor