Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) sales in China dropped to 26,006 in October, the lowest total in three years. That is down almost 38% from the same period of last year.
There was a silver lining for Tesla. The China Passenger Car Association reported that exports of Tesla’s China-made cars rose to a two-year high of 35,491.
Tesla’s market share in China slipped to 3.2%, also a three-year low. Its competition has grown rapidly, led by Chinese giant BYD. By some estimates, there are 100 electric vehicle (EV) companies in China, many of which will not survive. In the meantime, the brutal competition has created a price war.
Tesla already has problems in the world’s two other largest car markets. In most months this year, EU registrations (the way the European Union measures sales) have declined by high double-digit percentages in some nations. Local companies, including Volkswagen, the EU’s largest car manufacturer, have gained EV sales. Tesla’s trouble may be due in part to CEO Elon Musk offering opinions about local elections.
Tesla also faces a U.S. problem. In the third quarter of this year, its EV market share fell to less than 45%. That was down from 80% at its peak, according to some estimates.
Just like in Europe, legacy car companies, including Ford and GM, have added market share.
Yet, poor sales across the three large global markets have not hurt Tesla shares. They are up almost 250% in the past five years. Its market cap of $1.5 trillion makes it the world’s 10th most valuable company.
Musk has convinced investors to overlook poor sales. He claims that Tesla is no longer primarily a car company, but rather an artificial intelligence and robotics company. Based on his robot and robotaxi plans, this should soon be clear.
Tesla Stock Price Prediction and Forecast 2025–2030
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