This decrease marks the most significant drop since December 2022, when sales fell by 21% due to reduced production and price cuts in response to rising inventories and weakening demand. 

Despite the year-over-year decline, Tesla's deliveries of Model 3 and Model Y in China increased by 14.3% compared to October.

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BYD's Dynasty and Ocean series of EVs and petrol-electric hybrid models drove the growth, Reuters cites China Passenger Car Association (CPCA) data.

Tesla faces intense competition in China, the world's largest auto market. CEO Elon Musk continues to engage with Chinese leadership, including meeting with President Xi Jinping in November, where Xi expressed support for Tesla's operations in China. 

However, Tesla's market share in China's EV sector dropped to 5.78% in October from 8.7% in September amidst a price war and shifting consumer preferences towards more affordable plug-in hybrids. 

Tesla has increased its prices five times in China since late October due to the slowing growth in EV demand. Tesla's revenue from China climbed to over $18 billion in 2022, more than sixfold it generated in 2019.

Price Action: TSLA shares traded lower by 1.55% at $235.14 on the last check Monday.