Tesla's China-made electric vehicle sales slowed to a gain of 3.6% year-on-year in August even as the company extended its month-by-month growth streak.
Sales of Model 3 and Model Y vehicles from Tesla's Shanghai factory, including exports, rose to 86,166 units, marking the 10th straight month of growth, underscoring how the China plant remains central to the company's volume.
That headline gain masked a sharp deceleration from a 38% year-on-year rise in July and a 7.9% month-on-month decline in August, while Reuters data show exports made up more than half of Shanghai output in Q2 and Tesla's China battery-EV share fell to 6.6% in the second quarter, dynamics attributed to intensifying competition from local players such as BYD which for the first time generated more revenue overseas in the first half.
The report also flagged regulatory pressure, noting a record recall in late August that highlights how evolving safety rules in China are an immediate operational headwind for Tesla.
