Tesla’s Shanghai factory reported a 3.6% year-over-year increase in electric vehicle sales for August. This growth rate fell sharply from the 38% year-over-year increase recorded in July. Sales declined 7.9% on a month-over-month basis. Domestic rivals in China are capturing market share with more affordable, feature-rich models. Tesla’s share of the Chinese battery EV market has contracted since its 2020 peak.