• Tesla China's August wholesale sales rose 3.57% year-on-year but fell 7.92% from July.
• Wholesale sales totaled 647,694 in the first 8 months, up 25.63% year-on-year.

Tesla's (NASDAQ: TSLA) China operations saw wholesale sales continue to grow year-on-year in August but declined from the previous month, ending a 3-month run of sequential gains.

Tesla China's wholesale sales totaled 86,166 vehicles in August, up 3.57% from 83,192 a year earlier, according to data released Wednesday by the China Passenger Car Association (CPCA).

The figure fell 7.92% from the yearly high of 93,579 recorded in July. Year-on-year growth also narrowed sharply from 37.85% in July to 3.57%.

Still, it marked Tesla China's tenth consecutive month of year-on-year growth. The August total was the third-highest this year, trailing only July's 93,579 and June's 89,091.

It was also Tesla China's second-highest August on record, falling just 531 vehicles short of the record 86,697 set in August 2024, according to data compiled by CnEVPost.

Tesla underperformed China's broader new energy vehicle (NEV) market in August. The CPCA estimated that passenger NEV manufacturers recorded wholesale sales of 1.51 million vehicles during the month, up 16% year-on-year and 4% from July.

Based on that estimate, Tesla China accounted for about 5.71% of China's wholesale passenger NEV sales. Its sales declined sequentially while the broader market continued to grow.

In the first 8 months of the year, Tesla China's wholesale sales totaled 647,694 vehicles, up 25.63% year-on-year.

The figure was 3.63% above the previous high of 624,983 recorded in the same period of 2023 and was 132,142 vehicles higher than a year earlier.

Wholesale sales include Tesla's deliveries in the Chinese market and exports from its Shanghai factory. A detailed breakdown by market and model for August is expected in the coming days.

Exports have been the main driver of Tesla China's growth this year. In July, exports from the Shanghai factory reached a record 66,330 vehicles, accounting for 70.88% of its wholesale sales that month.

By contrast, Tesla delivered 27,249 vehicles in China in July, down 32.91% year-on-year.

Local competition continued to intensify. Leapmotor (HKEX: 9863) delivered 103,129 vehicles globally in August, exceeding Tesla China's wholesale sales for the third consecutive month.

BYD (HKEX: 1211) sold 440,293 NEVs during the same period, up 17.84% year-on-year and 5.03% from July. Its passenger NEV sales totaled 433,384 vehicles, up 16.66% year-on-year and 5.43% from July.

Zeekr and Nio Inc (NYSE: NIO) delivered 36,981 and 35,836 vehicles, respectively, in August.

The CPCA said the wholesale NEV market continued to grow in August, while retail demand remained weak. Whether China's auto market can stage its traditional seasonal upswing will be tested by data for September and October.