Tesla has recently faced multiple “sudden power loss” complaints in China.
A Model Y owner reported that while driving on a highway, the vehicle abruptly lost power when the remaining range showed 72 km, forcing the speed down to around 60 km/h. When the display later showed just over 60 km remaining, the car allegedly shut down completely, with even the hazard lights failing to activate. The owner stated that there were pregnant women, elderly passengers, and children in the car at the time. After contacting after-sales service, she was reportedly told the vehicle was out of warranty and battery instability might require paid inspection. She also claimed Tesla advised charging when range drops below 100 km during highway driving. The owner expressed dissatisfaction and said no apology was offered.
A similar case involved a Model 3 owner who said that after disengaging Autopilot (AP) on a highway due to a lane intrusion alert, the vehicle suddenly lost all power. The car reportedly went completely dark, and the doors and windows could not be opened normally. The vehicle had been purchased only three months earlier. Tesla reportedly offered a one-year extended warranty as compensation. As of publication, Tesla had not issued an official response.
These incidents come amid Tesla’s challenging 2025 financial performance:
- Revenue: $94.83 billion, down 2.93% year-over-year (first annual decline in years)
- Net profit: $3.794 billion, down 46.5% YoY
- Global deliveries: 1.636 million vehicles, down 8.6% YoY (largest annual drop in its history)
China performance also stagnated. Tesla generated $20.96 billion in revenue from China in 2025, nearly flat compared to 2024. Sales in China reportedly fell 4.8% year-over-year.
Analysts attribute Tesla’s decline to a combination of product cycle pressure and macroeconomic headwinds. Aggressive price cuts helped defend market share but significantly compressed margins. Meanwhile, domestic competitors such as BYD have expanded rapidly through vertical integration and broader product portfolios.
Additionally, Elon Musk announced that flagship models Model S and Model X will be discontinued by the end of Q2 2026. Their production lines will reportedly be converted for Optimus humanoid robot manufacturing.
Industry observers note that Model S/X served as Tesla’s technological halo products. Their discontinuation signals a deeper shift toward a volume-focused mass-market strategy. In the short term, this could open space in the premium EV segment for Porsche Taycan, Mercedes EQS, and high-end Chinese EV brands.
Whether domestic brands can capture that opportunity depends on achieving real technological leadership in areas such as autonomous driving and battery efficiency, rather than relying solely on feature stacking.
