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 May 15, 2025 at 7:09 PM (UTC+4)
Edited by Alessandro Renesis

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

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.

Alessandro is an automotive journalist with 10 years of experience covering supercars, automotive history, emerging vehicle technology, and luxury transportation. He wrote the first article published on SupercarBlondie.com when the website launched in 2022 and has since built a reputation for insightful reporting across the automotive and transportation industries. His expertise is grounded in hands-on experience. Alessandro has driven every Tesla model ever produced, from the original Roadster to the Cybertruck, and regularly covers the latest developments in electric vehicles and automotive innovation. His passion for transportation extends beyond cars, he has even flown a Boeing 787 Dreamliner simulator in Addis Ababa, Ethiopia. His reporting spans everything from classic American muscle cars and rare automotive discoveries to luxury yachts, private aircraft, high-end watches, and cutting-edge vehicle technology. Known for his deep knowledge of automotive history and ability to uncover the stories behind iconic vehicles, Alessandro brings readers a blend of historical context, technical expertise, and first-hand experience.