Tesla Sales Keep Falling As Board Bribes Musk To Pay Attention To Business - CleanTechnica

The article reports a significant decline in Tesla’s sales and production at its Shanghai factory, which shipped 67,886 cars in July 2025—a drop compared to July 2024. This decline is notable given the overall surge in China’s new energy vehicle (NEV) market, which grew by 25% year-over-year in July despite typically slow summer sales. Tesla faces intensified competition from domestic automakers like BYD and Xiaomi, with Xiaomi recently launching the YU7 to rival Tesla’s Model Y. Tesla’s response, a new model for China, appears to be a stopgap rather than a fully redesigned vehicle, and its reception by Chinese consumers remains uncertain. The broader Chinese EV market is experiencing fierce price competition, with companies like BYD and Great Wall Motors significantly cutting prices, prompting government warnings against pricing below production costs. Chinese President Xi Jinping has criticized provincial governments for over-investing in strategic sectors such as AI, computing, and new energy vehicles, warning of overheating risks.