Tesla's China sales dip, stock hits two-month losing streak

Tesla's retail sales in China saw a month-over-month increase in March, but a decline compared to the same period last year. As a result, Tesla's stock dropped about 1.5% on Thursday morning.

In March, Tesla delivered 56,107 electric vehicles, a 47% increase from February, according to data from the China Passenger Car Association (CPCA) cited by CnEVPost. However, the March numbers amounted to a 24% drop vs. 2025. Overall, retail auto sales in China fell 15% for the month vs. a year ago, but rose 59% compared to February, News.Az reports, citing foreign media.

The month-to-month increase is not surprising given that the months of January and February are the seasonal low period for auto sales in China — the world's largest consumer market. Those two months tend to coincide with Lunar New Year, the country's biggest holiday, when retail venues close and consumers put off big purchases. At the same time, many consumers in the market for a new car wait until March to buy because that is when car companies release their new models for the year.
Shanghai Gigafactory Exports

However, Tesla did see a major uptick in exports from its gigafactory in Shanghai. In March, the factory shipped 29,563 vehicles to markets outside of China, which was a staggering 529% year-on-year increase and 45% more than in February, according to the CPCA data.

The large increase in exports would track with the strong performance Tesla had in Asia and Australia last quarter where many of those cars are sent. Deliveries in South Korea rose more than 300% last month. Meanwhile, in Australia the Model Y is the country's top-selling EV.

Tesla's March wholesale sales from its Shanghai gigafactory, which include both cars sold in China and exports to other countries, totaled 85,670 EVs, a 9% increase from last year, according to CPCA data.

The majority of last month's wholesale sales came from the Model Y, which moved 55,856 units, a 14% increase. Meanwhile, Model 3 wholesale sales were 29,814, an increase of only 5 basis points vs. March 2025.

The Shanghai gigafactory produced the bulk of Tesla vehicles delivered in the first quarter. In the entire first quarter, China wholesale deliveries totaled 213,398 vehicles, a 23% increase from the year-ago period, according to the CPCA report. That means that just under 60% of Tesla's total deliveries in the first quarter came from the Shanghai gigafactory. It delivered 358,023 EVs in the first quarter, which fell short of the 365,645 units analysts had expected.

Tesla Stock

Tesla stock struggled over the past two months. Shares are currently on a seven-week losing streak, according to MarketSurge. Given this week's roughly 6% decline, Tesla stock is so far on pace to extend its negative run.

On Wednesday, shares were unable to capitalize on the broad market gains that followed the ceasefire between the U.S. and Iran and the release of the newest version of its Full Self-Driving software. The stock inched up in the early hours of Wednesday's session, but closed the day down 1%.

Tesla stock is down about 20% so far this year. It has a Composite Score of 17 out of a best possible 99, according to IBD's analysis.

News.Az 

By Ulviyya Salmanli