Key points
- Chinese buyers see Tesla as outdated and basic
- New Chinese fast-charging tech challenges Tesla dominance
- Investors fear Musk is too distracted from Tesla
ISLAMABAD: Tesla’s market share in China is shrinking as domestic electric vehicle manufacturers grow in popularity, offering models better suited to local tastes.
Chinese consumers increasingly regard Tesla as outdated, with competitors now providing features such as multiple entertainment screens, built-in refrigerators, and selfie cameras—amenities absent from standard Tesla models.
Meanwhile, Elon Musk’s reputation as a Beijing-friendly figure in Washington has diminished, particularly as his relationship with Donald Trump has soured. At the same time, leading Chinese EV companies such as BYD and battery producer CATL have introduced new fast-charging technologies that can recharge vehicles in just five minutes, further heightening competitive pressure on Tesla, according to The Wall Street Journal.
Tesla shares experienced a sharp decline among S&P 500 stocks on Monday, following renewed tensions between CEO Elon Musk and US President Donald Trump over the weekend.
Establishing political party
Once a key ally of Trump and a major donor, Musk revealed plans to launch a third political party in response to the Republican-backed spending bill passed last week.
Musk announced the formation of the “America Party” on Saturday amid escalating disagreements with Trump over his tax cut and spending package.
By a factor of 2 to 1, you want a new political party and you shall have it!
When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.
Today, the America Party is formed to give you back your freedom. https://t.co/9K8AD04QQN
— Elon Musk (@elonmusk) July 5, 2025
The timing of Musk’s political shift added to market jitters, coming just days after Tesla reported its second consecutive quarterly drop in vehicle deliveries—a clear sign of increasing pressure from fierce competition and an ageing product range.
“Investors are concerned about two main issues – first, the risk of further Trump hostility affecting subsidies, and second, more importantly, a distracted Musk,” said Neil Wilson, UK investor strategist at Saxo Markets, according to The Times of India.
