As Chinese competitors surge, sales of electric vehicle companies are in all major markets. But Tesla's problems have just begun.
tESLA is in a world of injury. In January, sales in its major markets fell by 31% in major markets in the United States. The figures in Europe were even worse, down 43% in the first two months of the year. In China, Tesla's sales so far have reached 29% as of February. Its stock has been stolen, down 34% this year. Against the backlash from part-time CEO Elon Musk, who also led five other companies – protesting at Tesla stores and protesting on stains in vehicles, he went out of his way to cut government workers and use them as a master of Trump.
But things will get worse.
The decline in sales shows that the company's financial situation is fundamentally faltering as competitors surge, especially rival Bied. The Chinese electric vehicle and battery maker first led Tesla in 2024 and threw it into dust at the pace of the global electric vehicle sales leader this year. Tesla's brand has become toxic in California and has cultivated it since the roadster arrived in 2008. It even failed in terms of technology, with Byd dominating self-driving cars with its ultra-fast rechargeable battery system and Waymo, while Musk bets on the company.
“Many people have Tesla in software, range and smart driving, making Tesla look like a laggard.”
But the worst thing so far is what is happening in Tesla, China, which opened its Shanghai factory in 2019. The factory is the first factory for foreign automakers’ full assets, marking a turning point for Tesla, a turning point for Tesla, which has grown a huge sales spike for large-scale sales and has consistently pushed it toward blacks, which is consistently pushing the Chinese labor force toward the Chinese labor force, part of the Chinese labor force and parts, parts and existing materials. However, in that market decline, Tesla has maintained steady growth until this year, threatening to narrow its already narrowed profit margins. One important reason for slow sales is that China's domestic electric vehicle companies are beginning to beat Tesla, and everything is on it.
“China gives Tesla a fully owned factory. They want technology and knowledge and experience. In this risk, China will take that technology and build something better,” said Ross Gerber, CEO of Gerber Kawasaki Wealth Management. “This is exactly what they are doing. Now they have really competitive vehicles, really competitive technologies, and vehicles are cheap.”
Tesla did not respond to a request for comment.
The Y model remains China's best-selling electric car last year, but Byd, the country's largest automaker, sold more electric cars, plus many models, from its $10,000 Seagull hatchback to its Yuan Plus compact SUV, starting at $16,000. These are less than half the cost of Tesla, and it positions itself as a more premium brand: the base price of the y-type starts at $34,500, and the Model 3 sells for about $32,000 and above. BYD's low prices also help it increase global sales in Latin America, Australia and Europe (high tariffs have thus far prevented its exports to the United States).
Bider has just launched a new five-minute battery charging system – four times faster than Tesla's supercharger. CATL, the world's largest battery maker and Tesla supplier, now disdains Musk's battery ambitions, including a newly launched lithium battery designed for heavy-duty vehicles. CEO and founder Robin Zeng (Robin Zeng) Reuters An interview late last year said he had been on par with the billionaire and that Tesla's new battery “will fail and never succeed.”
Byd sealed electric vehicle on display in Warsaw, Poland.
Nursing images by Getty images
Leaded by Billionaire Co-founder and CEO Wang Chuanfu Forbes It is estimated to be worth $28 billion, and Byd is also behind Tesla's complete autonomous driving system (although there is a name that still requires human surveillance). The Chinese company is automating its “Eye of God” to drive standard features on new cars, directly competing with Tesla's mentions of its hands-free driving system. Tesla has allowed Chinese customers to try FSD for free, although the feature charges $8,000 in the U.S. and is expected to follow suit in China.
BYD's system will be available in three versions, the base system offers features comparable to FSD, and a high-end version with laser radar not available in Tesla. It will also connect with the platform of China’s AI Upstart DeepSeek, which challenged Openai’s early lead in the field to continuously improve its performance. A reviewer wrote in the automotive news site The Drive that the system looks “more advanced than Tesla's, perhaps more advanced.”
Byd is not the only player, Musk, and all other global automakers are worth worrying about. There are also Xpeng, Xiaomi, Nio, Geely, Zeekr and battery giant CATL.
“They have IPs that are not developed in the rest of the world.”
“Western people are starting to pay attention to Bied, but there are other whole things [Chinese] They don't know about electric car manufacturers. Forbes.
“Many people have Tesla in software, range and smart driving and make Tesla look like a laggard,” he said. “The serious danger of being an EV manufacturer built on the three largest passenger car markets, while each market is simultaneously gradually slipping out of its own hands, partly due to self-imposed errors and laser-centric competition.”
China's electric car manufacturers not only match Musk, but also pass him – and the rest of the global automotive industry.
“They have IPs from the rest of the world,” Ford CEO Jim Farley said in a podcast. “This is not the era in the past when someone would copy Western technology. Instead.”
Tesla is also struggling at home. Tesla's tax revenue fell 11% despite overall U.S. electric vehicle sales rising 14% in January as consumers rush to buy them before the Trump administration canceled the $7,500 federal tax credit, according to S&P Global. This is due to a sharp decline in California, accounting for one-third or more of U.S. sales. S&P Global found that other electric car manufacturers like Hyundai, Kia and General Motors grew sales in left-leaning California on average 24% in January, while Tesla's sales fell 31%. These figures predate Musk's avoidance faced by Musk's Duke responsibilities, and the subsequent major protests at Tesla stores in California, the United States and Europe.
New numbers won't be available until April, but they won't be very good. “Tesla sales will be hit hard in the first quarter,” said Ed Kim, president and chief analyst at Autopafific, an industry consulting firm in Long Beach, California.
Anger at Musk and the brand have caused stock analysts to cut the company's sales targets, which are expected to decline in the same year-on-year terms. “It's hard to think of anything like this in the history of the automotive industry, where brands have lost value so quickly,” JP Morgan's Ryan Brinkman said in a recent research note. He cut Tesla's annual delivery forecast to 1.775 million cars this year, down from 1.789 billion last year.
Overall U.S. electric car sales should rise by 12%, according to Cox Automobile Co., Ltd. The industry’s forecasters say it’s down 7% from a year ago, the most of any premium brand.
“Because of Elon, now the most important climate and environmental companies are seen as pariahs. It's crazy.”
The lack of compelling new products is also a problem. Tesla’s recent addition is Musk’s stubborn Cybertruck, which has become a favorite target for anti-legacy destroyers, has been a failure, selling about 40,000 units last year, a fifth of the annual Musk forecast. The vehicle’s quality record is shocking, with eight recalls, including one this month to fix the risk of stainless steel body panels.
Perhaps to realize Tesla’s problems, Musk has touted plans to turn the hub to AI and robotics companies over the past two years. Not only does he make up 90% of Tesla's current revenue of battery packs and electric cars, he also bets that AI, Robotaxis and Humoleoid Robots will add trillions of dollars to Tesla's bottom line. In a January call for members, he said that investments in these areas “will have huge fruits in the future.”
Tesla also faces shortcomings. Alphabet's Waymo is ahead of Tesla in Robotaxi business, and Tesla is unlikely to access the massive amount of data collected by cameras to give it an AI advantage on millions of cars on the go. The company's Optimus is a humanoid robot that is often seen at Tesla events, and has not shown matching features created by the robot a few years ago, such as Boston Dynamics' acrobatics or Honda's children-sized Asimo, climbing up stairs, playing football, playing football and opening bottled drinks. (Honda retired in 2018.)
It is obvious that the damage Musk has caused to the company has just begun.
“Ironically, because of Elon, the most important climate and world environment companies are now seen as untouchables. It's crazy,” said Gerber, California-based. “The worst thing is that in China, they don't care about politics. In China, they're frustrated by actual competition.”
