Tesla’s electric vehicle sales in China fell for the eighth consecutive month in May, with 61,662 units sold, down 15% YoY, despite a 5.5% rise from April, according to the China Passenger Car Association. The ongoing decline is attributed to stiff domestic competition and a prolonged price war. Tesla’s stock dropped 3.6% following the report. So far in 2025, Tesla has sold 292,875 EVs in China, a 17.6% decline from the same period last year. Meanwhile, rival BYD sold 376,930 vehicles in May, up 14.1% YoY. To boost demand, Tesla reintroduced its owner referral program offering 8,000 RMB ($1,120) off paint upgrades.