Tesla’s sales slump is attributed to politics, Chinese rivals, and emerging market expansion challenges. The company’s stock price dropped 50% after a mid-December peak as sales fell year-on-year across key markets including the US, China, and Europe.
In Germany, Tesla’s sales collapsed by 76%, while in the US, they declined by 6%. In China, BYDBYDBYD Auto, a Chinese carmaker, gained market share and global attention. The country is home to EV industry expert Ravi Gadepalli, who stated, “Tesla needs India more than India needs Tesla.”
Local automakers like Tata Motors have established themselves in the Indian market with their affordable electric cars. They already have a strong foothold, having partnered with ride-hailing companies and rapidly grown through innovation.
In Southeast Asia, Chinese brands have expanded production, while Tesla has struggled to compete on price and model variety. Experts say Tesla’s pricing strategy is outdated, making it hard for the company to penetrate emerging markets like India and Saudi Arabia.
However, Tesla still holds a strong presence in some regions, including the United Arab Emirates, where its supercharger networks benefit from government incentives. The company plans to expand into new markets, but experts believe that entering these territories may not solve Tesla’s woes due to tough competition from Chinese carmakers and local companies.
Tesla’s CEO Elon Musk met with Indian Prime Minister Narendra Modi in Washington, discussing space technology, mobility, and innovation. The meeting could potentially lead to a change in India’s stance towards Tesla’s entry into the market. With limited EV sales data available for other Southeast Asian countries, Tesla ranks second in Malaysia and Singapore, but third in Cambodia.
As competition from Chinese rivals has picked up dramatically over the past two years, it is unlikely that Tesla will look for expansion markets instead of fixing existing ones. The company must address its struggles to compete with local companies like Tata Motors and established Chinese brands before attempting to enter new territories.
Source: https://restofworld.org/2025/tesla-loses-ground-chinese-ev-dominate-global-markets