Tesla's China Sales Plunge 80% in January; Model Y and Model 3 Drop Out of Top 50

In January 2026, Tesla’s retail sales in the Chinese market totaled only 18,485 units, a 45% year-over-year decline and an 80% drop from the record high of 93,843 units in December 2025—marking its lowest monthly sales since November 2022. The sharp decline was primarily driven by several factors: the upcoming elimination of China’s new energy vehicle (NEV) purchase tax exemption starting in 2026, which pulled forward demand into late 2025; the expiration of local government “trade-in” subsidies in November 2025, creating a policy gap that dampened replacement demand; and broader industry headwinds, as overall NEV passenger car retail sales in China fell 20% year-over-year to 596,000 units in January. On the competitive front, the Model Y sold just 16,845 units, slipping to 20th place—far behind Xiaomi’s SU7, which sold 37,869 units. Meanwhile, Model 3 deliveries plummeted 78.2% year-over-year to only 4,127 units, failing to rank among the top 50 best-selling models.