A recent incident involving a Tesla Model Y losing power on a highway in Zhejiang province has sparked widespread attention in China, with the story being amplified by state-controlled media outlet China.com. The report highlights the growing concerns over EV safety buffers and battery range accuracy, as well as Tesla's declining market share in China.
The driver of the vehicle, Ms. Chen, reported that the car's dashboard displayed 72 kilometers of remaining range when it suddenly lost power and began decelerating. All electrical systems then shut down, and the central display went dark, leaving the driver with no control over the vehicle.
While individual vehicle failures are statistically inevitable, given Tesla's large market share in China, the amplification of this incident by state media is a significant concern. It suggests that the government may be shifting its stance towards Tesla, potentially due to Elon Musk's increasing political activities and declining sales figures.
Tesla's domestic sales in China have crashed 45% year-over-year in January 2026, falling to just 18,485 units, the lowest level in over three years. This decline is attributed not only to a pull-forward effect from December's rush before a new 5% purchase tax took effect on January 1 but also to Tesla's failure to regain market share.
The January collapse followed what was already Tesla's first full year of sales decline in China, with full-year 2025 retail sales falling 4.78% to 625,698 units. Tesla's share of China's NEV market dropped from 10% to 8%, indicating a significant loss of ground to domestic competitors.
Chinese competitors such as Xiaomi and Xpeng are surging in the market, with their models outselling Tesla's in key segments. The recently launched Xiaomi YU7 and Xpeng G7 are directly targeting the Model Y with aggressive pricing, which has attracted over 300,000 combined orders.
Tesla is increasingly relying on its Shanghai factory as an export hub rather than a vehicle for Chinese domestic demand. This shift may be a response to declining sales figures, but it also highlights Tesla's reduced presence in the Chinese market.
The amplification of this incident by state media comes as Elon Musk's political activities have drawn global backlash. His role leading the Department of Government Efficiency (DOGE) in the United States damaged the Tesla brand worldwide, on top of his constant ranting about race and gender.
In China specifically, Chinese state media has debunked Musk's claims about Tesla FSD approval, further eroding trust in the company's narrative. The Chinese government has also previously restricted Tesla vehicles from government compounds over camera-related security concerns.
The incident itself is less important than who's telling the story and why. State media choosing to amplify a single vehicle failure is a significant concern, as it suggests that the government may be shifting its stance towards Tesla, potentially due to declining sales figures and Elon Musk's increasing political activities.
