Tesla’s China sales hit a three-year low, with only 26,000 vehicles sold in October. Competition and softer demand are cited as reasons for the decline, with retail deliveries dropping by 35.8% year on year from September.

China remains Tesla’s second-largest market, but the company is facing challenges. Exports of vehicles built in China hit a two-year high at 35,491 units in October, but the overall market conditions have softened, affecting Tesla’s sales.

The slump in China adds to a weak October in Europe, with competitive pressures intensifying. Xiaomi, expanding in EVs, reported record monthly sales in China. Broader market conditions also softened, with overall car sales declining in October due to weakened consumer sentiment.

Tesla’s operational challenges are compounded by leadership turnover as key executives announce their departures. Emmanuel Lamacchia, program manager for the Model Y, and Siddhant Awasthi, head of the Cybertruck program, both announced their departures, adding to the company’s challenges in the competitive EV market.

Read more at Yahoo Finance: Intense competition drags Tesla’s China sales to lowest point in three years