Tesla’s China sales have reportedly fallen to 26,000 vehicles in the month of October, its lowest monthly level in three years.

Tesla's sales decline in the world’s largest EV market comes amid intensifying competition and softer demand, reported Reuters.

Retail deliveries in China dropped 35.8% year on year, from September’s 71,525 units, when Tesla started handing over the China-only Model Y L, a longer-wheelbase, six-seat variant of the Model Y SUV.

China remained Tesla’s second-largest market after the US in the third quarter.

Offsetting some of the local market weakness, exports of vehicles built in China grew to a two-year high of 35,491 units in October, according to data from the China Passenger Car Association.

The slump for Tresla in China adds to a weak October in Europe, including Germany, Spain, the Netherlands and the Nordics, signalling sustained pressure on Tesla across key international markets.

Notably, competitive pressures are intensifying in China.

Xiaomi, which is expanding in EVs with the SU7 sedan and YU SUV, reported record monthly sales of 48,654 vehicles in October, even as accidents involving its sedans raised safety questions.

Broader market conditions also softened: China’s overall car sales declined in October as consumer sentiment weakened following reduced subsidies and tax incentives.

Tesla’s operational backdrop was compounded by leadership turnover. Emmanuel Lamacchia, programme manager for the Model Y, said he is leaving Tesla after almost eight years.

His announcement came hours after Siddhant Awasthi, head of the Cybertruck programme, also said he was departing.

Beginning his career at Tesla as an intern eight years ago, Awasthi recently took over the Model 3 programme.