Preliminary data from the China Passenger Car Association show Tesla sold 67,886 vehicles made at its Shanghai factory in July, an 8.4% decline from a year earlier and 5.2% fewer than in June. The setback ends a brief uptick in June and leaves the carmaker’s China sales for the first seven months of 2025 at 432,360 vehicles, down 13.66% from the same period in 2024. Analysts attribute the reversal to stiffening competition from domestic rivals amid an industry-wide price war. Tesla aims to refresh its line-up later this year with a six-seat Model Y L, which has entered regulators’ catalogues ahead of an expected autumn launch. European rival Volvo Cars also reported weaker results, saying July deliveries fell 14% year on year to 49,273 vehicles. Fully electric models dropped 26% and accounted for 21% of total sales, while combined sales of battery-electric and plug-in hybrids slipped 21%, representing 45% of the month’s volume. The company, majority-owned by China’s Geely, is contending with softer demand for premium EVs and lingering supply-chain constraints.