The Shanghai Gigafactory delivered 61,662 Model 3 and Model Y vehicles to buyers on the mainland and overseas in May, down 15 per cent from a year earlier, according to data from the China Passenger Car Association (CPCA) on Wednesday. Deliveries rose 5.5 per cent from April. For the first five months of the year, Gigafactory deliveries were down 17.6 per cent from a year earlier to 292,875 vehicles. “Tesla is expected to face a downward spiral in China as domestic carmakers launch more new models to lure customers away from the Model 3 and Model Y,” said Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto. “At the same time, Chinese rivals are offering steep discounts or selling their new models with attractive prices, making it difficult for Tesla to retain its market share.” Since 2024, Chinese electric vehicle (EV) makers like BYD and Xpeng have rolled out cheaper new models to take on Tesla on the mainland, the world’s largest auto market. Advertisement Xpeng’s Mona 03 – a midsize, fully electric sedan that hit the market in August – is priced from 119,800 yuan (US$16,629) to 159,800 yuan. Tesla’s Model 3 starts at 235,500 yuan. Advertisement