Recent reports indicate that Tesla vehicles in China have experienced multiple incidents of sudden power loss. One Tesla Model Y owner reported that their vehicle lost power abruptly while driving on a highway, even though the remaining range showed over 70 kilometers. In another case, a Tesla Model 3 owner stated that after manually intervening while using Autopilot, the vehicle completely lost power. Notably, both incidents occurred on highways, posing significant safety risks.
This comes at a time when Tesla has released disappointing financial results for 2025. The company reported its first annual revenue decline, with net profit nearly halving compared to the previous year. Sales also experienced the largest drop to date, causing Tesla to lose its position as the global leader in electric vehicle sales.
It is worth noting that Tesla's revenue in the Chinese market has nearly stagnated, with sales declining by 4.8% year-on-year.
Additionally, Tesla's flagship models, the Model S and Model X, are set to be discontinued by the end of the second quarter. Industry experts suggest that this move signals Tesla's full transition toward a mass-market strategy, shifting its brand image from a "technology pioneer" to an "electric Toyota."
Owners of affected vehicles have expressed strong dissatisfaction. One Model Y owner described a situation where the vehicle suddenly lost power on a highway while showing 72 kilometers of remaining range. The vehicle slowed down to 60 km/h, endangering the passengers, including an elderly person, a child, and a pregnant woman. Even more alarming, when the range dropped to 60 kilometers, the vehicle completely shut down, disabling even the hazard lights.
After contacting Tesla's customer service, the owner was informed that the vehicle's battery was unstable due to being out of warranty and that an inspection could be scheduled at the owner's expense. The customer service representative also advised charging the vehicle when the remaining range falls below 100 kilometers during highway driving. The owner found this response unacceptable, questioning the practicality of electric vehicles if a displayed range of 60 kilometers cannot be trusted.
The owner also emphasized that Tesla did not offer any apology for the incident, expressing frustration over the company's handling of quality issues post-warranty.
This case is not isolated. Another Tesla Model 3 owner shared a video on social media describing how their vehicle, purchased just three months prior, completely lost power after they intervened while using Autopilot on a highway. The vehicle shut down entirely, with the screen going black and the doors and windows failing to open. Tesla's proposed resolution was to offer a one-year extended warranty, which the owner deemed insufficient, expressing a desire to return the vehicle.
Tesla's performance in the Chinese market remains challenging. In 2025, the company's revenue in China was nearly stagnant, showing almost no growth compared to 2024. Although Tesla did not disclose specific sales figures for the Chinese market in 2025, data from the China Passenger Car Association indicates that Tesla sold 625,698 electric vehicles in China last year, a decline of 4.8% from 2024.
Industry analysts attribute Tesla's declining revenue and profit in 2025 to a combination of product cycle challenges and macroeconomic pressures. While price cuts have helped maintain market share, they have significantly eroded profit margins. High global interest rates have also dampened consumer demand for vehicles. Moreover, intensified competition in China, particularly from BYD, has put additional pressure on Tesla.
In a recent earnings call, Tesla CEO Elon Musk announced that the Model S and Model X will be discontinued by the end of the second quarter of 2026. The production line at the Fremont factory in California will be repurposed for the production of Optimus humanoid robots, with an planned annual capacity of one million units.
The Model S and Model X have long been considered benchmark models for Tesla, playing a key role in shaping the brand's premium image. However, their high prices and outdated features have led to declining sales globally. Musk's decision to discontinue these models is seen as a strategic shift toward artificial intelligence and mass-market electric vehicles.
Experts suggest that phasing out flagship models may weaken Tesla's brand appeal, particularly among high-end consumers. This could create opportunities for competitors such as Porsche, Mercedes-Benz, and Chinese electric vehicle manufacturers to capture market share in the premium segment. However, for domestic brands to succeed, they must demonstrate technological leadership in areas such as autonomous driving and battery efficiency, rather than relying solely on feature-rich offerings.