Tesla(US:TSLA) Xin Lang Cai Jing·2026-02-12 00:45Core Viewpoint - Tesla is facing significant challenges in the Chinese market, including a recent incident of sudden power loss in its vehicles, a decline in revenue and profit, and the decision to discontinue its flagship models, indicating a shift towards a mass-market strategy [2][10][30]. Group 1: Vehicle Incidents - Multiple Tesla Model Y and Model 3 owners reported dangerous incidents where their vehicles lost power unexpectedly while driving on highways, raising safety concerns [3][5][7]. - One Model Y owner experienced a complete power loss when the vehicle showed over 60 kilometers of range remaining, leading to a dangerous situation with passengers onboard [5][22]. - Tesla's customer service response to these incidents has been criticized for lack of accountability, with no apologies offered to affected customers [5][22]. Group 2: Financial Performance - Tesla's 2025 financial results showed total revenue of $94.83 billion, a decrease of 2.93% year-over-year, marking the first annual revenue decline in recent years [10][28]. - The company's net profit for 2025 was reported at $3.794 billion, a significant drop of 46.5% compared to 2024, indicating severe financial pressure [10][28]. - Tesla's vehicle deliveries in 2025 totaled 1.636 million units, reflecting an 8.6% decline, the largest annual drop in its history, and marking the second consecutive year of declining deliveries [10][28]. Group 3: Market Position and Strategy - Tesla has lost its position as the global leader in electric vehicle sales, overtaken by BYD, which reported a total of 4.602 million units sold in 2025, a 7.73% increase [10][28]. - In the Chinese market, Tesla's revenue has stagnated, with figures showing $21.745 billion in 2023, dropping to $20.944 billion in 2024, and only slightly increasing to $20.962 billion in 2025 [10][28]. - The decision to discontinue the Model S and Model X by mid-2026 is seen as a strategic shift towards a more volume-driven approach, potentially diluting Tesla's brand image from a "tech pioneer" to a more mainstream "electric Toyota" [10][30][32]. Group 4: Competitive Landscape - The competitive landscape in China has shifted dramatically, with BYD leveraging cost advantages and a broader product lineup to dominate the mainstream price segment, while Tesla's product offerings remain limited [30][32]. - The discontinuation of flagship models may create a temporary vacuum in the high-end electric vehicle market, presenting opportunities for domestic brands to capture high-end users [32][33]. - However, domestic brands face the challenge of establishing a technological edge over Tesla, as the discontinuation of Model S/X is a strategic retreat rather than a reflection of technological inferiority [33].