Tesla Inc. experienced a decrease in shipments from its Shanghai factory, with deliveries dropping 5.3% year-on-year in October. A total of 68,280 Model 3 sedans and Model Y sport utility vehicles were shipped, which is a significant 23% decrease compared to September.

This unexpected decline comes after a record quarter for the electric vehicle manufacturer in China, as indicated by preliminary data from the China Passenger Car Association. The decrease in shipments raises concerns about demand in the largest electric vehicle market globally, particularly following strong performance in previous months.

Analysts will closely monitor Tesla's sales trends in the upcoming months to assess the impact on the company's overall performance and market position in China.