Tesla struggling globally as it faces intense competition

Sales of Tesla’s China-made vehicles fell 15% year-on-year in May, its eighth consecutive month of decline, and combined local sales and exports totalled slightly less than 62,000 units. In China itself, sales fell 30% to around 39,000 units, versus more than 55,000 in May 2024. Its decline can be partly attributed to price cuts by BYD and Chery. In Q1 2021, Tesla had a market share of around 19% in the broad new energy vehicle market. By May 2025, this had fallen to less than 5% as Chinese OEMs’ price war took its toll.