Tesla Falls from Grace, China's Electric Vehicle Market Sees a Historic Moment!
On December 16, the South Korean media outlet "Herald Economic" published an article stating that China's electric vehicle market has reached a historic moment. Xiaomi's first electric SUV, YU7, surpassed Tesla Model Y in single-vehicle sales for the first time in October.
According to statistics from the China Passenger Car Association, YU7 sold 33,662 units in October, exceeding the combined sales of Tesla Model Y and Model 3 in the Chinese market during the same period (26,006 units).
More surprisingly, Xiaomi entered the electric vehicle sector only 20 months ago. Xiaomi launched its first electric vehicle SU7 in April 2024, and sold 48,654 new energy vehicles in October, solidifying its position as a leading electric vehicle manufacturer in China.
October was a nightmare for Tesla. Its sales in China dropped by 35.8% year-on-year, reaching the lowest level since November 2022. Even more shocking was the drop from 71,525 units in September to 26,006 units in October, a decrease of 63.6%.
Tesla's market share in China fell to 3.2% in October, lower than 8.7% in September, marking a three-year low. The cumulative sales from January to October decreased by 8.4%, and export volume dropped by 14%.
Xiaomi's success is not just reflected in sales. Ford CEO Jim Farley praised the Xiaomi SU7 on a podcast, saying: "I flew the Xiaomi SU7 from Shanghai, and I've been driving it for six months; it's amazing." Ford CFO John Lawler also visited China, test drove a domestic electric vehicle, and admitted: "China has surpassed us."
Tesla's decline is self-inflicted. Since the failure of Cybertruck, there have been almost no plans for new models. The Model Y, released in 2020, had only minor improvements over the next six years. Key vehicle development personnel have left one after another, and Elon Musk seems to have shifted his focus to politics rather than vehicle R&D.
October 2025 will be seen as a symbol of "generational change" in China's electric vehicle market. Xiaomi sold a total of 315,376 electric vehicles from January to October, approaching its annual target of 350,000 units. Based on October's sales alone, Xiaomi is likely to exceed its sales target.
Xiaomi's success is particularly notable because it is a smartphone manufacturer that has succeeded in the electric vehicle industry—something even Apple has abandoned. The essence of the automotive industry is changing. Software integration, user experience, and digital ecosystems are now more important than traditional automotive manufacturing technologies.
Industry experts unanimously believe that competition in China's electric vehicle market is "far more intense than in the U.S." Companies like Huawei, Li Auto, and XPeng have taken the lead in advanced autonomous driving technology compared to Tesla. In the U.S. market, Tesla "fights alone," but in China, its technology lags behind competitors.
Despite Musk's promise that sales will grow by 20% to 30% in 2025, experts agree that this goal cannot be achieved without new model launches. However, Tesla has failed to present any new model plans for many years.
In the end, October 2025 is not just about monthly sales data. It marks the end of Tesla's era in China's electric vehicle market and the official beginning of the era of Chinese manufacturers, including Xiaomi.
Original: toutiao.com/article/1851626619532298/
Statement: This article represents the views of the author.