I’m from space!

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Joined 3 years ago
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Cake day: June 10th, 2023

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  • First, there’s the pull-forward effect. December 2025 was Tesla’s best-ever retail month in China at 93,843 units, as buyers rushed to purchase before the reinstatement of a 5% purchase tax on NEVs starting January 1, 2026. That tax had been fully exempted for over a decade. Some of January’s weakness is borrowed December strength.

    Second, China’s vehicle trade-in subsidies expired in most cities in mid-November and remain in a transitional phase, dampening demand broadly.

    Third, the broader NEV market was weak. China’s total passenger NEV retail sales fell 20% year-over-year in January to 596,000 units, according to CPCA estimates. Even BYD saw its NEV sales drop 30% year-over-year and 50% month-over-month.

    But here’s the thing: even BYD’s weak month produced 210,051 units. Tesla’s 18,485 is a different universe.