Less demand, growing competition, image damage – Tesla's sales from Giga Shanghai are increasingly under pressure. According to the latest CPCA figures*, the China-Made Deliveries of Model 3 & Model Y in April 2025 decreased by 6% compared to the same month last year and even by 25.8% compared to March. Why is Tesla losing ground in its most important single market, and what strategies are intended to bring about a turnaround?
Sales Decline Overview
-
58,459 vehicles delivered from Giga Shanghai (domestic + export)
-
‑6% YoY, ‑25.8% MoM
-
Seventh consecutive month with declining numbers
In parallel, BYD cements its dominance: 372,615 EV + PHEV sold (+19.4% YoY) show how strongly domestic brands are growing.
Causes of the Decline
1. Tough Competition & Price War
-
Dozens of new E-Crossovers from the Shanghai Auto Show are directly targeting the Model Y in terms of price.
-
BYD, Aion, Xiaomi & Co. score with price-performance and shorter model cycles.
2. Image Problems in Europe & USA
-
Political statements by Elon Musk alienate customers; European registrations plummeted in April.
-
Negative headlines are spreading to China via social media.
3. Lack of Model Variety
-
Model 3 & Y are now six and five years old, respectively.
-
Promised budget models (“Redwood”) have been postponed; launch of the cost-effective Model-Y variant only in 2026 in Shanghai.
Tesla's Countermeasures
| Strategy | Status | Goal |
|---|---|---|
| Price offensives | repeated discounts & 0% financing | reduce inventory, stimulate demand |
| Market entries India & Saudi Arabia | Showrooms + Data Teams under construction | new sales channels beyond EU/USA |
| Local manufacturing of the affordable Model Y | Production start 2026 | Competitive price under 200k RMB |
| Robotaxi & FSD Expansion | Pilot in Austin June 25; China in planning | leverage technology advantage |
What does this mean for European Tesla fans?
-
Delivery times could remain stable despite weaker demand, as export quotas are flexibly adjusted.
-
Price actions in EU markets are likely to defend market share.
-
In the medium to long term, new model series will be crucial to boost image and sales curve.
Conclusion
Tesla's 6% decline in April is not an isolated case, but part of an ongoing negative trend. Stronger rivals, political controversies, and an aging model range increase the pressure. With lower prices, new markets, and a more affordable Model Y from Shanghai starting in 2026, Tesla aims to counter – but the industry is not sleeping. The next quarters will show whether the Californians can turn the corner or continue to lose their lead.
Did you like our article?
If you’re already more proud Tesla-Driver are or should be in a timely manner, visit our online shop Shop4Tesla and secure 10% Discount on all products with the discount code: NEWS4TESLA.In our extensive range you will find a variety of high-quality Tesla-Accessories for every model Discover exciting innovations and accessories that will Tesla-Make the experience even better - www.shop4tesla.com.
