Tesla struck a deal in 2018 to build a factory in Shanghai, with a government official calling the U.S. auto maker a “catfish” that would stir life into China’s stagnant pond of domestic electric-vehicle makers. The plan succeeded. Tesla has sold more than a million cars in China and helped propel China to become the world’s largest EV market—about 66% of worldwide EV sales are in China.
Now, some of those domestic laggards are emerging as strong rivals to Tesla. Its share of China’s all-electric retail car market dropped from 13% in 2021 to 8% in the first nine months of this year, according to data from the country’s car association.
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