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Musk is running
Mint Chennai
|July 08, 2025
As Tesla falls behind the local competitors it helped create, the
s Elon Musk confronts deepening business and political challenges in the U.S., he's also facing trouble in his other most important market: China.
For a while, Tesla was the hottest car on Chinese roads, and Musk was the toast of Beijing. Government officials showered the company with incentives, part of a concerted strategy to turbocharge the Chinese EV industry by injecting Tesla know-how into the country and spurring competition. Tesla's sales took off.
But the risk was always that Tesla would start falling behind the rivals it helped create. Now, that is exactly what's happening.
Tesla's market share has shriveled as other Chinese automakers become more popular. Meanwhile, Musk's reputation as a partner for Beijing in Washington took a beating as his relationship with Donald Trump soured.
Chinese consumers say Teslas increasingly feel tired and out of touch with local tastes. Top China-designed EVs nowadays come with features that aren't normally found in Teslas, such as multiple big screens to watch films and play games, refrigerators to keep drinks cold and in-car cameras for selfies.
BYD, which makes both EVs and batteries; and battery giant Contemporary Amperex Technology, or CATL, recently said they each had developed new technologies that allow users to charge cars in just five minutes.
Tesla's China staff have voiced concerns to headquarters about the company's aging products, but their warnings often drew sluggish responses, China-based employees said. The frustrations have built as Chinese salespeople feel more pressure to hit targets, without the sexiest cars to sell.
Many Chinese consumers still appreciate Tesla's brand image as an EV pioneer. And the company retains support in Beijing. Chinese leaders see Tesla as a poster child of successful foreign investment and a useful ally in helping China build a green economy, centered on industries such as renewable energy, EVs and batteries.
This story is from the July 08, 2025 edition of Mint Chennai.
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