Tesla’s brand has lost the lustre in its major markets due to the political engagements of its CEO Elon Musk, creating opportunities for Chinese rivals like BYD and Xiaomi to fill the void, according to a UBS survey.
The number of electric vehicle (EV) buyers who pick Tesla as their top choice fell last year to 14 per cent in mainland China, down from 18 per cent in 2023 and nearly half of the 30 per cent peak in 2020 when the US carmaker began assembling its Model 3 in Shanghai, UBS said in a report released on Tuesday.
Tesla has lost ground with customers worldwide, with 18 per cent of global vehicle buyers considering it their top pick last year, down from 22 per cent in 2023, according to UBS’ survey of 10,500 participants. In the US, the positive view fell to 29 per cent, from 38 per cent. In Europe, the share fell to 15 per cent from 20 per cent a year ago.
“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.”
Supporters of New Generation (Neue Generation) protest against Elon Musk in Berlin on March 31, 2025. Photo: Reuters
On the mainland, Tesla has been outshone in performance and perception by BYD, the world’s largest EV builder. Even Xiaomi, the smartphone and appliance maker that turned out an EV where Apple failed, has gained popularity at Tesla’s expense, according to the report which did not publish detailed percentage numbers for the two companies.
Last month, BYD sold more pure electric cars than market leader Tesla in Europe for the first time, according to market research firm Jato Dynamics. The Shenzhen-based carmaker sold 7,231 EVs in April, up 169 per cent on year, while Tesla’s sales fell 49 per cent to 7,165 units in the same period.
