Tesla finally outsold in China as Model 3 knocked off its perch by new car in first year of production

  • Tesla was outsold in China for the very first time
  • The Model 3 trailed behind the Xiaomi car in terms of sales
  • Xiaomi also wants to beat the Model Y with a new model

Published on Feb 24, 2025 at 7:20 PM (UTC+4)
by Alessandro Renesis

Last updated on Feb 24, 2025 at 7:21 PM (UTC+4)
Edited by Kate Bain

After what feels like a lifetime, the Tesla Model 3 was outsold in China by a locally produced car, the Xiaomi SU7.

The Model 3 is a best seller for Tesla, and it continues to perform well, but this wasn’t enough last year.

With just over 150,000 units sold, the Model 3 was forced to get a closer look at the taillights of the Xiaomi car as it accelerated towards this new record, because Xiaomi outsold Tesla by 10,000+ units.

So now only one question remains…

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How did the new SU7 beat the Model 3?

Between April 2024 and January 1, 2025, Xiaomi sold 162,384 examples of the SU7, while Tesla moved just 152,748 Model 3s in the same period.

Tesla started out strong, but the SU7 caught up quite quickly, and it then overtook the Model 3 in terms of sales.

And now the smartphone maker/automaker is gunning for the Model Y as well, the best-selling car of 2023 and 2024, with the upcoming YU7.

For reference, the YU7 (pictured below) is to the Model Y exactly what the SU7 is to the Tesla Model 3.

Should Tesla worry?

That’s the million-dollar question, and the short answer is probably ‘Yes’.

No one was expecting the Xiaomi car, but it’s here, and to say that things are going well for the brand would be an understatement.

The company says it can build one in less than three minutes, and the company also says this is a proper performance car, a point it keeps proving by breaking records.

Everyone, from car fans to high-profile CEOs, seem to love it.

Tesla is still doing well, but the fact it lost its top spot in China speaks volumes.

The good news is that, after the Juniper, Tesla company is also looking to revamp sales of the Model X and Model S with face-lifted and upgraded versions.

Hopefully (for them), it’ll work.

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Experienced content creator with a strong focus on cars and watches. Alessandro penned the first-ever post on the Supercar Blondie website and covers cars, watches, yachts, real estate and crypto. Former DriveTribe writer, fixed gear bike owner, obsessed with ducks for some reason.