Tesla's sales in China fell to 26,006 vehicles in October, the lowest level in three years, as the US electric carmaker faces weak demand in a highly competitive market.

Sales fell 35.8 percent year-on-year, down from 71,525 vehicles in September, the same month Tesla began delivering its YL model, available exclusively in the Chinese market.

But data released Monday by the China Passenger Car Association showed that Tesla's exports of cars made in China jumped to a two-year high of 35,491 vehicles last month.

Tesla's share of the electric vehicle market in China fell to just 3.2 percent in October, a sharp drop from 8.7 percent the previous month and its lowest level in more than three years.

This poor performance in the world's largest car market comes after equally bad results for billionaire Elon Musk's car company in Europe, where sales have declined in countries such as Germany, Spain, the Netherlands and the Scandinavian countries.

Tesla is facing increasing pressure in China, its second-largest market after the United States, especially with the rise of competitors such as Xiaomi, which posted record sales of 48,654 units last month, despite controversy over the safety of its cars.

Overall demand for cars in China also declined in October, due to weak consumer confidence and reduced government support and tax breaks.