<div id="readability-page-1"><div><div>Tesla Inc TSLA is struggling with sales demand in several territories around the world, including China. A new report suggests that Tesla's declines in China may have arrived at a particularly inopportune time.What Happened: Increased competition from other electric vehicle and automotive companies has hurt Tesla in China, as it is being outpaced on key items such as pricing and technology features. The company is also facing competition from new companies entering the market, like smartphone company Xiaomi.The electric vehicle market share in China has reached 51% year-to-date, with each of the last five months having a share above 50%, according to data from the China Association of Automobile Manufacturers.Electrek reported that battery electric vehicles (BEVs) account for 31% of China's market, with plug-in hybrids (PHEVs) making up the remaining 20%, bringing total EV share to 51%.China is the largest electric vehicle market in the world based on the number of units produced, with around 12 million made in 2024. In 2024, China represented around 70% of the global EV market by units. The majority of the EVs produced in China were sold in the country, while around one million were exported to other countries in 2024.Read Also: Tesla Q2 Earnings Highlights: Revenue And Earnings Fall Short; New Models Still Set For 2025–2026Why It's Important: Reaching a market share of over 50% could be considered a tipping point for China, according to the report.According to Electrek, Norway surpassed 50% EV market share in 2020 and today leads the world with over 90% of new vehicle sales being electric.With China's large market share and dominance in the number of units, the country has become the key market for electric vehicles.With Tesla losing sales momentum in the country, this marks a potential big miss for the EV giant and bad timing to miss out on the growth in China.EV market share in the United States remains minimal compared to China, with less than 10% of new cars sold in 2024 being electric vehicles. Without committing more to electric vehicle production like China has, EV market share could grow slower in the U.S. than it has in recent years.TSLA Price Action: Tesla stock was down 3.5% to $333.86 on Friday versus a 52-week trading range of $207.03 to $488.54. Tesla stock is down 12.5% year-to-date in 2025.<ul> <li>Tesla’s Chinese EV Rival Is So Popular, The CEO Is Actually Recommending Other Brands To Shoppers</li> </ul>Photo: humphery / Shutterstock.com</div></div></div>

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Tesla Inc is facing declining sales in China amid increasing competition from other electric vehicle manufacturers, including new entrants like Xiaomi. The electric vehicle market in China has reached a significant 51% market share, with battery electric vehicles accounting for 31% and plug-in hybrids for 20%. This growth marks a critical point for the EV market in China, which dominates global production. Tesla's struggles come at a crucial time, as the company risks missing out on this growth opportunity. Tesla's stock has also seen a decline, down 12.5% year-to-date.

- Tesla Inc. is experiencing declining sales demand globally, particularly in China, due to increased competition from other electric vehicle manufacturers.  
- The electric vehicle market in China has reached a 51% share year-to-date, with Tesla facing challenges from both established and new competitors, including Xiaomi.  
- This decline in sales comes at a critical time as China dominates the global EV market, producing around 12 million units in 2024, which could significantly impact Tesla's growth prospects.  

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Tesla's Struggles In China Come At Bad Time: Electric Vehicles Hit 51% Market Share In Most Populous Country