According to UBS, Tesla has seen a decline in preference among worldwide consumers, with only 18 percent of potential buyers ranking it as their top choice last year, compared to 22 percent previously.
Tesla’s
The brand has lost its shine globally in key markets because of the political connections involving CEO Elon Musk, which opens up chances for competitors from China such as
BYD
and
Xiaomi
To address the gap, as indicated by a UBS survey.
The number of
electric vehicle
( EV ) purchasers in Mainland China who chose Tesla as their preferred option decreased to 14 percent last year from 18 percent the previous year and a high of 30 percent in 2020 when the American automaker started producing its Model 3 in Shanghai, according to a report issued by UBS on Tuesday.
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According to UBS’ survey involving 10,500 participants, Tesla’s popularity among global car purchasers has declined. Last year, only 18 percent of potential buyers ranked Tesla as their first choice globally, compared to 22 percent in 2023. The sentiment was also lower domestically; in the United States, this figure dropped to 29 percent from 38 percent. Similarly, in Europe, the favorable opinion decreased to 15 percent from 20 percent over the same period.
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“In China, we see intense competition and Tesla is no longer seen as the technology leader,” the report said. “In Europe, we believe there may have been brand damage from Musk’s political involvement. Overall, we remain cautious on Tesla stock.”
In Mainland China, Tesla has lost its edge in both performance and public image.
BYD, which holds the title of being the biggest manufacturer of electric vehicles globally,
Even Xiaomi, the company known for smartphones and appliances that successfully ventured into electric vehicles after tech giant Apple missed this opportunity, has seen increased popularity at Tesla’s expense, as mentioned in the report. However, the document didn’t provide specific percentages for both firms.
For the first time last month, BYD outsold European market leader Tesla in purely electric vehicles, as reported by market research company Jato Dynamics. In April, the Shenzhen-based automaker saw sales of EVs rise by 169 percent compared to the previous year, reaching 7,231 units. Meanwhile, Tesla’s sales dropped 49 percent during this period, totaling 7,165 vehicles.
When BYD’s domestically produced all-electric vehicles are sold within the European Union, they are now subjected to an extra 17 percent tax.

The UBS study highlighted the intensely competitive nature of China’s electric vehicle sector, which is producing domestic leaders that are eclipsing formerly prominent brands such as General Motors, Toyota Motor Corporation, and Tesla. In 2009, China surpassed the United States to become the biggest automotive market globally, and currently produces more electric vehicles annually than all other countries together.
Since 2020, Tesla has been dominating China’s luxury electric vehicle sector, making up over 16 percent of all electric car sales across the country. In 2024, with 657,000 vehicles sold, it captured a 6 percent stake in the Chinese market. Up until now, China stands as Tesla’s second-biggest market globally, following only the United States.
Chinese automakers can produce more advanced versions of their vehicles at reduced prices compared to Tesla’s Model 3 and Model Y,” noted Gao Shen, an independent analyst based in Shanghai. “Local brands are increasingly attracting buyers away from Tesla.

According to Shanghai-based data provider CnEVPost, Tesla’s deliveries in the initial three months of this year decreased by 31.6 percent compared to the last quarter, totaling 134,607 units in China.
One of Tesla’s competitors in China is
Xpeng’s Mona M03
Priced at 119,800 yuan ($16,629), this vehicle presents a significant challenge to the American automaker as it provides comparable smart features to the Model 3 sedan but for roughly half the cost.
Last week,
Xiaomi has revealed its much-awaited YU7 sports utility vehicle.
To compete with the Model Y, the YU7 comes equipped with an initial autonomous driving system, a sizable infotainment display, and a top-tier battery. It’s considered a groundbreaking addition to the luxury electric vehicle sector. However, pricing details haven’t been announced yet.
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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which stands as the premier source for news coverage of China andAsia.
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