If Tesla’s plan was always to kickstart the electric vehicle revolution and then pass the baton to others to take it forward, then that plan is going phenomenally well. While Tesla experiments with its next potential disruptors—robotaxis and humanoid robots—its core passenger vehicle business has taken a pummeling.
The once dominant brand even got overtaken by an unlikely rival, General Motors, which is now selling more EVs in China and also has a larger market share. Who saw that coming?
Welcome back to Critical Materials, your daily round-up of news and events shaping the world of electric cars and technology. Also on our radar this morning: Tesla will resume importing Chinese parts for the Cybercab and Semi after the U.S. and China temporarily diffuse trade tensions. Plus, BMW continues to be the smartest of all German carmakers amid this rocky electrification phase, sticking to its guns and aiming towards broader EV offerings by 2030.
30%: GM Tops Tesla In China’s April EV Sales
Tesla disrupted the global auto industry with its EV revolution, but increasingly, it seems uninterested in leading that charge through its most critical phases. But automakers in China, even those with firm roots in Detroit, have learned from the Tesla playbook. And now, they’re running with it.
According to China Passenger Car Association data cited by Cnevpost, Tesla dropped from the third spot all the way to eighth place in China's April EV market share. BYD continued to lead with a 29.7% market share in April EV sales, followed by the Geely Group (13.1%), Changan (6.7%) and the SAIC-GM-Wuling joint venture (5.7%).
Tesla’s market share in China dropped to 3.2% in April, down from 4.6% last year and way down from 7.5% in March. However, it’s worth noting that the new energy vehicle (NEV) category includes EVs, plug-in hybrids and fuel-cell vehicles, so it's not purely an electric segment. BYD and Geely sell EVs and PHEVs, whereas Tesla only sells pure EVs.
But Tesla’s sales in the U.S. and much of Europe also plummeted in the first quarter, with executives partly blaming the sales drop on the production ramp-up of the refreshed Model Y. But the electric crossover may not be saving Tesla. The automaker already has cheap financing offers available in the U.S.—a sign of weak demand.
Meanwhile, its rivals are only getting stronger with newer models that aren’t just upgrades of existing cars. That includes General Motors, which is recovering in China with help from its joint venture partners. The SAIC-GM-Wuling JV sold over 100,000 EVs in the country last year. Not only did it overtake Tesla in April NEV sales, but also in the January-April market share, with GM accounting for 6.3% of China’s NEV market and Tesla standing at 4.9%.
Several models are driving GM’s surge in China. Buick is so big in the country it has its own sub-brand called Electra, offering such rides as the E5 and Velite 6. It plans to launch several new EVs there this year and even introduce cheaper lithium-iron-phosphate (LFP) batteries. Models such as the Buick GL8 minivan, Cadillac Lyriq and the Wuling Hong Guang MiniEV are also driving sales.
60%: Tesla Resumes Chinese Parts Imports For Cybercab
Tesla makes the most American-made EVs, but even then it can’t fully escape the globalized supply chain. No vehicle in the U.S. uses fully localized parts content. With the U.S. and China diffusing their trade tensions this week through lower tariffs (for now, anyway), there seems to be an immediate respite for U.S. automakers.
Tesla had reportedly halted shipping parts for its upcoming Cybercab, which it revealed last year with much fanfare at its We, Robot event in Hollywood. Now it has resumed shipping Cybercab and Semi parts from China, Reuters reported on Wednesday. The U.S. has lowered tariffs on Chinese parts from 145% to 30% for 90 days. China also dropped tariffs on American goods from 125% to 10%.
Elon Musk says the Cybercab will unlock the next phase of growth for Tesla as the company steps back from its core passenger vehicle business. Trial production of the Cybercab is expected to begin in October at Gigafactory Texas, whereas the Semi will be made in Nevada. Tesla has promised to launch the two-door Cybercab in 2026 at a starting price of around $30,000.
90%: BMW To Expand EV Line-Up By 2030
BMW’s EV transition is going way smoother than its rivals. It was smart about it from the get-go, introducing competitive EVs such as the i4 and iX on existing combustion-engine platforms while preparing for a full-blown software-defined vehicle (SDV) launch planned for this year with its Neue Klasse models.
The German automaker remained stalwart towards its EV ambitions during its Annual General Meeting on Wednesday. The company's goal of 50% EV sales by 2030 is still in place. To make that possible, BMW will have at least one EV in every segment it competes in.
"While other manufacturers are reversing course or adjusting their strategy, we are on exactly the right track," said BMW CEO Oliver Zipse. "Even policymakers are starting to come around: The new German federal government supports a broad approach to technology, while the European Commission seeks to make Europe more competitive. The “Green Industrial Deal” finally considers climate protection and the economy “in tandem”. That is a good thing."
Local German outlets were quick to speculate that this strategy would spawn smaller i1 or i2 models and even iX3 or iX5 SUVs. Currently, BMW mainly has the i4, i5, and i7 electric sedans. There’s also the iX electric SUV, and in some global markets, it also sells the i3 sedan based on the 3 Series and the iX3 SUV.
Its Neue Klasse onslaught is expected to begin later this year with a sedan and an SUV.
100%: Can GM Be A Disruptive EV Brand?
Some of you might need to recalibrate how you think about GM as an EV brand. After all, in gas truck country, it's still a top seller of fuel-hungry pickups and SUVs. But don’t forget, GM now has more than 10 EV models on sale in the U.S., and its joint ventures in China are gaining traction too.
Can GM help drive the U.S. into the next phase of EV growth? Drop your thoughts in the comments.
Have a tip? Contact the author: suvrat.kothari@insideevs.com
