Camilla Jessen
Despite strong reviews for the new Model Y, Tesla is losing massive ground in China and Europe.
Tesla’s struggles in international markets have taken a dramatic turn, with new data revealing a 69% drop in weekly sales in China, its most critical market outside the United States.
According to figures cited by Electrek, the American EV giant is facing intensifying pressure from Chinese automakers, whose rapid growth is eating into Tesla’s once-dominant position.
Tesla is currently delivering about 3,070 vehicles per week in China, down sharply from the same period last year.
While the company previously cited export prioritization from its Shanghai Giga Factory as a reason for weakened domestic performance, the latest data shows exports are falling too, and Tesla is now being squeezed from both sides.
Chinese Brands Taking the Lead
Tesla’s steep decline comes as local competitors like BYD, Geely, and SAIC Group surge ahead.
These homegrown EV brands offer increasingly refined, cost-effective models and benefit from growing consumer trust and favorable domestic policies. With their aggressive pricing and expanding model range, they are proving to be formidable rivals in the world’s largest EV market.
Adding to the paradox is the fact that Tesla’s newest models — especially the updated Model Y — continue to earn rave reviews from industry critics:
- Electrifying.com: 9/10
- Top Gear: 8/10
- What Car?: 4/5
- Indeside EVs: “Excellent”
Reviewers consistently praise the Model Y’s performance, technology, and overall refinement, calling it Tesla’s best iteration to date.
Yet, the product quality hasn’t been enough to offset declining market share, raising questions about external factors affecting Tesla’s appeal.
Is Elon Musk the Problem?
Some analysts and journalists point to CEO Elon Musk as a possible drag on the brand’s global reputation. While the cars themselves are performing well,
Musk’s controversial public persona, political statements, and presence on X may be alienating potential buyers — particularly in regions where brand image heavily influences consumer trust.
As Indeside EVs bluntly put it:
The car’s only real problem is Elon Musk.
Despite the dramatic sales drop, Tesla’s stock has rebounded in recent days, recovering from a sharp decline back in December, shortly after Donald Trump’s election win.
Still, analysts caution that short-term investor optimism may not reflect the long-term challenge of maintaining global market leadership amid fast-rising local competition.