Tesla Stock Dips as Chinese Sales Decline Despite Global Shipments Rising

Tesla’s stock slipped more than 2% in early trading as investors reacted to reports of declining vehicle sales in China, even as shipments from China to overseas markets increased.

According to data from the China Passenger Car Association (CPCA), Tesla’s October sales in China dropped to around 26,000 vehicles — the company’s lowest in three years. While this reflects a dip in domestic demand, the automaker has seen a rise in exports of Chinese-made Teslas to other regions.

This news comes just days after shareholders approved a massive new pay package for CEO Elon Musk, a decision seen as securing his continued leadership and commitment to Tesla’s long-term vision — one increasingly focused on robotaxis and AI-driven automation.

Although investors are now paying more attention to Tesla’s ambitious future ventures, vehicle sales remain crucial, as they still account for the majority of the company’s revenue. The company’s broader targets include producing 20 million vehicles and achieving 10 million active subscriptions for its self-driving software — both dependent on sustained car sales.

Tesla shares had previously rallied alongside broader U.S. markets amid optimism about a possible end to the government shutdown but are now facing renewed pressure from the latest sales data.