While the Tesla brand struggles to recover financially, China’s electric vehicle companies are thriving — and may zoom ahead with self-driving cars, too.
What’s happening?
Tesla has plans to soft launch a robotaxi service in Austin, Texas, in June — a service that has been teased for more than six years by Tesla CEO Elon Musk. However, Chinese competitors have been on the automaker’s heels.
Many Chinese companies have offered affordable EVs with self-driving technology for an inexpensive price, according to a Reuters study. For example, BYD offered its «God’s Eye» driver-assistance package for free this year while Tesla charged $9,000 for «Full Self-Driving.»
Reuters reported that the costs for BYD to obtain materials and build a system similar to Tesla are about the same. Ultimately, the research found that EV customers in China can buy a BYD comparable to Tesla’s cheapest FSD vehicle for much cheaper in the world’s largest car market.
Why is EV competition important?
High EV prices can impact the adoption of affordably powered, environmentally friendly vehicles worldwide. The International Energy Agency found that EVs accounted for almost half of all vehicle sales in China in 2024. While the market is booming in China, Tesla has been struggling overall. The EV automaker reported that its net income fell 71% year-over-year.
Not only is Tesla facing stiff competition from Chinese automakers, but American auto companies have also become fierce rivals in the EV market. According to USA Today, General Motors’ EV sales spiked over the last year, with the Chevrolet Equinox EV becoming its best-selling model.
However, GM released a statement last year saying it was pulling the plug on its own driverless taxi service due to time and resources, per CNN. Ford and Volkswagen also abandoned a joint project to develop self-driving cars years ago, the outlet reported.
What’s being done to encourage drivers to buy EVs?
Investing in an EV can help drivers save money and help the planet at the same time. EV drivers no longer have to spend money on high gas prices, and their vehicles require less maintenance. Additionally, the planet-friendly vehicles produce zero tailpipe pollution and have a smaller carbon impact overall.
For those in the market for a vehicle, new data revealed that now is a good time to purchase a used EV. According to a Forbes report, customers have discovered great deals on high-performance models since resale values for luxury EVs have fallen. In fact, pre-owned EV sales rose by 27% in April 2025 thanks to the new price tags.
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