Tesla Sales in China Plunge 45% in January, Hitting Three-Year Low

In January 2026, Tesla experienced a sharp decline in retail sales in China, delivering only 18,485 vehicles—a year-over-year drop of 45% and the lowest monthly figure in nearly three years. This represents an approximately 80% plunge from its record high in December 2025. The main factors behind this downturn include the reinstatement of purchase taxes on new energy vehicles (NEVs), demand exhaustion from previous periods, and a current policy vacuum that has dampened consumer willingness to trade in their vehicles for new ones. During the same period, overall retail sales of domestic NEV passenger cars fell by 20% year-over-year to 596,000 units, further exacerbating Tesla's challenges amid a broader industry slowdown. By model, the Model Y ranked only 20th on the monthly passenger vehicle sales chart, with sales less than half those of its rival, the Xiaomi SU7. Meanwhile, the Model 3 sold just 4,127 units and failed to make it into the top 50.