Tesla is stalling in China just as its rivals pick up speed

Core Insights - Tesla's sales in China have declined, with 83,200 cars sold in August, representing a 4% decrease year-over-year [1] - Local EV startups such as Nio, Leapmotor, and Xpeng are experiencing significant growth, with record monthly sales reported in August [2] - Geely's sales surged by 38% in August, reaching nearly 150,000 vehicles, highlighting the competitive nature of China's EV market [2] Company Performance - Xpeng launched the G7 SUV priced at $27,320, while Nio introduced the L90 six-seater at $36,940, both undercutting Tesla's Model Y [3] - Xiaomi's YU7 electric car received over 240,000 preorders within 24 hours of its launch, indicating strong demand for new entrants in the market [3] - Xiaomi sold over 30,000 cars in August and is working to increase production to meet high demand, with waiting times for the YU7 exceeding a year [8] Market Dynamics - Tesla's sales challenges are attributed to a stale product lineup, prompting the introduction of an extended six-seater version of the Model Y [9] - BYD, another major player in the EV market, reported flat sales in August, indicating that the competitive pressure is affecting multiple companies [9]