Tesla’s China Collapse

Market Share and Competition - Tesla's U.S. market share has decreased to approximately 45% from nearly 80% a decade ago, while legacy automakers like Ford, GM, and Hyundai now collectively hold over 25% of the electric vehicle (EV) market [1] - In China, Tesla's market share has dropped to seventh place, with shipments declining by 9.9% year over year to 61,497 units, significantly trailing market leader BYD [4][5] Sales and Profitability - Tesla and overall EV sales in the U.S. surged in the third quarter due to a rush for the $7,500 EV tax credit, but Tesla's profits fell as a result of reduced vehicle prices [2] - The removal of the EV tax credit is expected to lead to a significant decline in EV sales [2] Challenges in Europe and China - Tesla's unit sales in most EU countries are declining month after month due to increased competition, an aging product lineup, and backlash against CEO Elon Musk's political activism [3] - In China, the presence of over 100 EV brands has sparked a price war, affecting even leading companies like BYD, and some smaller manufacturers are expected to go out of business [4]