In a shocking turn of events, Tesla’s dominance in the electric vehicle market is crumbling as orders from its Shanghai Gigafactory plummet, raising alarms even among its staunchest supporters, including former President Donald Trump. After a brief resurgence, Tesla’s deliveries have nosedived, with July marking the lowest output in 18 months. The company’s once-reliable market share is now under siege, dropping from 16.5% to just 13% as local rival BYD unleashes aggressive price cuts, turning the landscape of electric vehicles into a fierce battleground.

This unprecedented decline comes as Tesla grapples with a perfect storm of challenges: dwindling orders, rising lithium prices, and relentless competition from domestic brands that are slashing prices to capture consumer interest. The Model Y and Model 3, which once stood as pillars of profitability, are now caught in the crossfire of BYD’s rapid expansion and cost advantages, pushing Tesla’s profit margins to the brink.

As Tesla’s stock price fluctuates amid these developments, analysts warn of a looming crisis. The company’s ambitious target of 900,000 domestic sales now seems increasingly out of reach, with projections suggesting a stark reality of just 820,000 to 830,000. The urgency is palpable; Tesla must act swiftly to reverse this trend or risk losing its foothold in the world’s largest EV market.

Compounding these challenges, geopolitical tensions and trade barriers threaten to further destabilize Tesla’s operations, limiting its ability to capitalize on emerging markets. With the clock ticking, Tesla’s management faces an uphill battle to restore its once-unstoppable momentum. The stakes have never been higher, and the future of Tesla hangs in the balance as it navigates this turbulent landscape. Will the EV giant reclaim its throne, or is this the beginning of the end for its reign in China? Time will tell.