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Reports indicate that Tesla witnessed a substantial slump in its retail sales across China during January. A mere 18,485 units were sold, reflecting a 45% year-on-year decrease. This figure represents the lowest monthly sales volume in three years, a downturn not seen since November 2022. Furthermore, it marks an even more staggering 80% decline when juxtaposed with the historical sales peak of 93,843 units achieved in December 2025. The downturn in Tesla's January sales can be attributed to a confluence of factors, with the premature depletion of consumer demand emerging as the primary culprit. Owing to the reinstatement of a 5% purchase tax on new energy vehicles effective January 1, 2026, consumers hastened their car purchases in advance. This rush subsequently led to a precipitous drop in market demand come January.
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