Summary
Tesla is rapidly losing market share in China as local brands like BYD and Xiaomi offer cheaper, more advanced electric vehicles.
BYD sold 481,318 cars in the first two months of 2025, far outpacing Tesla’s 60,480, a 14% decline from last year. Chinese consumers now see Tesla as overpriced and lagging in self-driving technology.
Economic slowdowns and government incentives have further reshaped the market.
Tesla recently introduced a limited version of Autopilot in China, but rivals remain more competitive, with some models costing half as much as a Tesla.