As Tesla’s dominance in China’s electric vehicle market continues to slide, the company’s popular Model Y has sold out for 2025 deliveries. New orders now face delays pushing into 2026. Tesla’s China ordering page shows customers must buy existing inventory units if they want delivery by year-end. The base Model Y RWD and Model Y L variants have 4-8 week wait times. Other variants stretch to 4-13 weeks. Industry experts say these timelines confirm Tesla’s 2025 sales capacity is completely full.
Tesla’s Model Y has sold out for 2025, with new orders facing delays stretching into 2026 as capacity reaches its limit.
Tesla’s market troubles in China run deeper than inventory issues. The company’s wholesale sales in October 2025 plummeted to 61,497 units, dropping 32.3% from September. That same month, Tesla’s market share crashed to just 3.2%, down from 8.7% the previous month. This marks the lowest share in over three years. The decline’s even more striking when comparing to 2020, when Tesla held a commanding 16% market share as its Shanghai factory started producing vehicles for mainland customers. Notably, September 2025 saw the Model Y contribute 59,907 units to Tesla’s total wholesale sales, demonstrating how sharply deliveries have deteriorated since then.
The company’s struggles reflect fierce competition from Chinese rivals. Companies like Xpeng and Xiaomi’ve been winning customers with diverse product selections. An official from the International Intelligent Vehicle Engineering Association stated these competitors will keep pulling buyers away from Tesla’s Model 3 and Model Y selections. Even Tesla’s price cuts, interest-free loans, and new model launches haven’t stopped the slide. Shanghai Gigafactory production ramp-ups have failed to offset the competitive pressure from local rivals. Additionally, Tesla’s directive to exclude China-made components from US vehicle production has created operational complexities that may be diverting management focus and resources. Government subsidy reductions have further diminished consumer sentiment in China.
Tesla did introduce updates meant to refresh its aging lineup. The six-seat Model Y L variant arrived in September, priced at 339,000 yuan—roughly 30% higher than basic models. It features an advanced LG Energy Solution battery. Earlier in 2025, Tesla launched a refreshed Model Y with improved range and interior upgrades. The company’s also planning a cheaper version without certain features like the panoramic roof and rear screen. Meanwhile, the rental market for Tesla vehicles in other regions shows daily rates between $200-$300, reflecting ongoing consumer interest despite varying availability challenges.
Despite these efforts, Tesla’s China-made vehicle sales from its Shanghai factory fell 13.7% overall to 432,000 units across domestic and export markets. The company’s shrinking presence signals how quickly dominance can disappear in China’s highly competitive EV market.