--- title: "The Walls Are Closing in on Tesla" description: "The walls are only beginning to close in as Tesla's competitors in China are starting to make significant moves." date: "2025-03-28" modified: "2025-03-28" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/walls-closing-in-tesla-china-competition" categories: - "Advanced Transport" - "Tesla" tags: - "BYD" - "china" - "elon musk" - "tesla" --- # The Walls Are Closing in on Tesla ![The walls are only beginning to close in as Tesla's competitors in China are starting to make significant moves.]() *\Image: Win McNamee/Getty Images\* Tesla is really starting to feel the hurt — in large part due to [Musk's self-inflicted wounds](). Despite a share price that's [slowly recovering]() from a disastrous year so far, the company has seen sales fall off a steep cliff in key markets, including [Europe](), [China](), and its [home turf in the ]()[US](). As [*Forbes* reports](), the walls are only beginning to close in as Tesla's competitors in China are starting to make significant moves, leapfrogging the company not only in terms of sales and revenue — but technology as well. Earlier this week, [news emerged]() that Chinese EV maker BYD had crushed Tesla by passing the $100 billion mark in revenue last year. That's in comparison to Tesla's $97.7 billion in revenue over the same period. BYD is also working on software directly competing with Tesla's [misleadingly-named Full Self-Driving system](), called "God's Eye." The top-end version of the software will make use of laser and LIDAR sensors, which [Tesla infamously ditched]() in favor of an exclusive reliance on cameras. And the competition in China is only growing. "People in the West are starting to pay attention to BYD, but there's this whole gaggle of other \[Chinese\] EV makers they have no idea about," consultancy Sino Auto Insights managing director Tu Le told *Forbes*. "Many have out-Tesla-ed Tesla in software, range and in intelligent driving and are making Tesla look like the laggard," he said. "It’s in serious jeopardy of becoming an EV manufacturer that builds in the three largest passenger vehicle markets while simultaneously each market slowly slips out of its hands due in part to self-inflicted mistakes and laser-focused competition." All eyes will be on Tesla when the company announces its new quarterly results early next month. And analysts are expecting the worst in light of a [surge in anti-Musk sentiment]() driving the company's sales down, a lack of tempting new product offerings, and a [massively damaged brand](). "Tesla sales are going to take a hit in Q1," AutoPacific industry consulting firm chief analyst Ed Kim told *Forbes*. "The irony is that the most important company for climate and the environment in the world is now being treated like a pariah because of Elon. It’s crazy," longtime shareholder and wealth management firm executive Ross Gerber told the publication. "The worst part is that in China they don’t care about the politics," he added. "In China, they’re down because of actual competition." **More on Tesla:** *[Tesla Forced to Change Name of "Full Self-Driving" in China, Since Its Cars Can't Fully Drive Themselves]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()