WSJ Tech News Briefing: Tesla Was China’s Favorite EV Brand. Now It’s Stuck Playing Catch-up Release Date: July 8, 2025

Introduction In the July 8, 2025 episode of WSJ Tech News Briefing, host Patrick Coffey delves into the shifting landscape of Tesla's position in the Chinese electric vehicle (EV) market and explores the burgeoning field of food delivery robots. The episode provides an in-depth analysis of Tesla's declining market share in China and examines the societal implications of autonomous delivery systems on urban life.

Tesla's Declining Dominance in China

Rafael Huang, Asia Tech Reporter, provides detailed insights into Tesla's recent challenges in the Chinese market.

• Market Share Reduction

  Tesla's presence in China, once formidable, has seen a significant downturn. Huang reports, “In May, Tesla's sales in China dropped 30% year on year against a 28% overall market rise” (01:15). The company's market share within the new energy vehicle sector plummeted from 11% in early 2021 to a mere 4% by May 2025.

• Rise of Local Competitors

  Local Chinese brands like BYD and Xiaomi have overshadowed Tesla, capitalizing on their deep understanding of the domestic market. Huang notes, “Overshadowed by local competitors like BYD and Xiaomi, revising these slides is vital for Elon Musk and Tesla” (01:20). The decline is particularly concerning as China remains Tesla's second-largest revenue market and its biggest production export hub.

• Strategic Responses and Skepticism

  To counteract the sales dip, Tesla plans to introduce more affordable Model Y variants next year. However, skepticism looms among employees and analysts regarding this strategy. Huang explains, “There is skepticism… they fear that [affordable models] will easily be outmatched again by local competitors unless the price is significantly lower” (02:31).

• Impact of Musk's Political Relations

  The deterioration of Elon Musk's relationship with former President Trump has had reverberating effects in China. Huang observes, “Beijing's… view of Elon Musk as a diablo asset has diminished… leading to them distancing themselves from publicly quoting him” (03:58). This shift reflects China's nuanced approach to foreign investments, balancing admiration for Tesla's success with a growing emphasis on empowering domestic brands.

• Product Innovation Concerns

  A lack of new models and slow product innovation have further eroded Tesla's appeal in China. Consumers perceive Tesla as outdated compared to the rapidly evolving features offered by local brands. Huang cites a consumer’s switch from Tesla to Xiaomi EV due to integrated features like voice assistants connected to smart home devices (04:57). Additionally, concerns raised by Tesla's China staff about aging product lines have been largely ignored by headquarters, exacerbating the company's challenges (05:30).

The Rise and Challenges of Food Delivery Robots

Heather Haddon explores the integration of robots into the food delivery industry and the mixed reactions they are eliciting from the public.

• Operational Challenges

  While companies like GrubHub advocate for the convenience of delivery robots, these autonomous devices frequently encounter obstacles. Haddon reports issues such as robots getting stuck in snow, flipping over, or being tripped by students (07:13). These malfunctions necessitate human intervention, highlighting the technological and environmental limitations of current models.

• Public Perception and Ethical Concerns

  The presence of food delivery robots has sparked a debate about their impact on human interaction and campus life. Haddon quotes a college student who described the robots as “evidence of the college campus experience barreling towards dystopia” (09:08). The student argued that reliance on robots reduces the need for students to visit cafeterias, thereby diminishing opportunities for social engagement.

• Emotional Attachment to Robots

  Despite technical issues, some individuals express a fondness for these machines. Haddon shares sentiments from an interviewed woman who said, “I know it's technically not a human, but they're cute” (08:27). This emotional attachment is attributed to the robots' anthropomorphic features, though it contrasts with others' fears of a dystopian future where robots replace human roles.

• Industry Optimism and Economic Incentives

  Companies remain optimistic about the future of delivery robots. Haddon notes that GrubHub operates more than 30 campuses with these robots and has expanded to other cities, attracting significant investment, including from tech entrepreneur Sam Altman (09:56). The economic drive to reduce delivery costs in the face of rising labor wages propels continued development and deployment of robotic solutions.

Conclusion The episode of WSJ Tech News Briefing provides a comprehensive look into Tesla's strategic struggles within the competitive Chinese EV market and the societal implications of integrating robotics into everyday services like food delivery. As Tesla navigates declining sales and intensifying local competition, the broader discourse on technology's role in society continues to evolve, reflecting both optimism for innovation and caution about its impacts.

Notable Quotes:

• Rafael Huang on Tesla's market share: “In May, Tesla's sales in China dropped 30% year on year against a 28% overall market rise” (01:15).
• Heather Haddon on public perception: “I know it's technically not a human, but they're cute” (08:27).
• Heather Haddon on industry optimism: “The economic incentive is really there because food delivery has always been super expensive to do” (10:38).

Timestamps:

• 01:15: Rafael Huang discusses Tesla's declining sales in China.
• 02:31: Discussion on Tesla's strategy for more affordable models.
• 03:58: Impact of Musk's fallout with President Trump on Tesla's standing in China.
• 04:57: Chinese consumers' perception of Tesla's product innovation lag.
• 07:13: Introduction to the topic of food delivery robots.
• 08:27: Emotional response to delivery robots.
• 09:08: Student's perspective on robots affecting campus life.
• 09:56: Companies' optimism about the future of delivery robots.
• 10:38: Economic incentives driving the adoption of robotics in food delivery.