Tesla's sales in China experienced a notable setback in the third quarter of 2025, falling 8% compared to the same period in the previous year. This decline brings the company's year-over-year sales in the country down by 6.4% through September. The dip in sales occurred despite various promotions and incentives, including the introduction of the Model YL and offering 0% financing on many of its vehicles. These financing deals, which can save consumers between $1,500 to $2,500, have been extended to the end of the year. The Chinese market, the world's largest for electric vehicles, is intensely competitive with strong local players like BYD and Nio.