– Tesla’s Shanghai Gigafactory saw 11.7% YoY delivery decline in Q2 2025, with 6.5% China market share—down from 9% in 2024.
– Chinese EV startups like BYD (35% 2023 sales), Xiaomi, and Xpeng outcompete Tesla through localized R&D, aggressive pricing, and state subsidies.
– Tesla’s 13.59% Q4 2024 automotive margin decline reflects pricing wars, while policy shifts favor affordability over premium models.
– Investors face risks from Tesla’s China+ export drop (22% YoY), margin pressures, and rising competition, urging diversification into resilient local EV players.
