January sales landed at 63,238 vehicles, compared to 71,447 the same month last year, reports CNBC.
Tesla is being pressed by tough competition from Chinese electric car manufacturers. Chinese BYD, for example, sold approximately 296,000 electric cars and hybrids in January, an increase of 47 percent in one year.
To boost sales in China, Tesla has tried price reductions and interest-free car loans on the best-selling Model Y.
Earlier in the week, it was reported that Tesla's sales had plummeted in several parts of Europe. In France, the decrease is 63 percent in one year, in Germany 59 percent, and in the UK 12 percent.
The decline comes at the same time as criticism of Tesla's CEO Elon Musk is growing in Europe. Musk – who is a close adviser to US President Donald Trump – has recently been in hot water for his fascist-like greeting at Trump's inauguration.