Chinese state media amplifies Tesla Model Y failure report

A 2022 Tesla Model Y suddenly lost power on a highway in China's Zhejiang province, despite showing 72 kilometers of remaining range, prompting coverage from state media outlet China.com. The story went viral on Chinese social media, sparking discussions on electric vehicle safety. This amplification occurs as Tesla faces a sharp sales decline in China.

On the evening of February 7, a 2022 Tesla Model Y lost all propulsion while driving from Shanghai toward Taizhou on a highway in Zhejiang province. The vehicle stopped about 2 kilometers before the Shengzhou service area. Driver Ms. Chen noted that the dashboard indicated roughly 72 kilometers of range left when the car began decelerating unexpectedly. All electrical systems failed, the central display turned off, steering assist vanished, and hazard lights could not be activated. Ms. Chen maneuvered the immobilized vehicle into the emergency lane using its momentum.

China.com, a state media outlet under China's State Council Information Office, published the report, which quickly spread across platforms like Weibo. This coverage has fueled online debates about safety margins in electric vehicles and the accuracy of battery range displays.

Tesla has over 1.5 million vehicles on Chinese roads. The company sold about 657,000 units in 2024 and 626,000 in 2025. However, January 2026 saw domestic sales drop 45% year-over-year to 18,485 units, the lowest in more than three years. Full-year 2025 retail sales fell 4.78% to 625,698 units, reducing Tesla's share of China's new energy vehicle market from 10% to 8%. Competitors like Xiaomi's SU7 delivered 258,164 units in 2025, surpassing the Model 3. New models such as Xiaomi's YU7 and Xpeng's G7 are competing directly with the Model Y, reportedly securing over 300,000 combined orders.

In January 2026, of Tesla's 69,129 wholesale vehicles from Shanghai, over 73% (50,644) went to export markets. Historically, Tesla enjoyed close government ties, including the Gigafactory Shanghai deal brokered with Premier Li Qiang, allowing it to operate without a local joint venture. An Associated Press investigation noted Tesla won nearly 90% of civil cases against customers and journalists over safety issues in China.

Recently, Chinese state media contradicted Elon Musk's claims about Tesla's Full Self-Driving approval in January 2026. Tesla vehicles have also faced restrictions in government compounds due to camera security concerns. Commenter Anupreet Singh suggested China views Tesla as less strategically vital now that its domestic EV industry has advanced.

Electrek described the state media's choice to highlight this single failure as the key aspect, contrasting with past protections for Tesla.

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Illustration depicting Tesla's record-low 1-3 week delivery times in China at Giga Shanghai, with happy customers and factory backdrop.
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Tesla's delivery wait times in China reach historic lows

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Tesla's estimated delivery times for vehicles in China have dropped to one to three weeks across all models, marking historic lows as of February 26, 2026. This development follows a sharp decline in January sales and indicates that Giga Shanghai has cleared its order backlog. The company has extended financing incentives to boost local demand amid a competitive EV market.

The Tesla Model Y, launched in 2020, has gained popularity as an electric SUV with strong performance metrics, yet it has faced numerous technical and build-quality challenges. These problems have prompted several recalls and owner complaints over the years. While recent models show improvements, earlier versions remain affected by persistent concerns.

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In a significant shift in China's electric vehicle market, Xiaomi's SU7 surpassed Tesla's Model 3 in sales for 2025, delivering 258,164 units compared to Tesla's 200,361. This marks the first time since Tesla's 2019 entry into China that another brand has overtaken it in the premium sedan segment. The development highlights intensifying competition, prompting Tesla to launch an insurance subsidy for the Model 3.

Chinese officials have announced a ban on concealed door handles for electric vehicles, a design popularized by Tesla, citing safety concerns from fire incidents. The regulation, set to take effect in 2027 according to one report or 2029 per another, requires mechanical release mechanisms to ensure easy access during emergencies. This move positions China as a leader in EV safety standards, potentially influencing global norms.

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New data shows Tesla's electric vehicle sales in Europe dropped 27.8% in 2025 compared to 2024. Registrations fell from 326,000 to 235,000 vehicles amid growing competition and policy changes. This slowdown raises questions about the brand's momentum in the EV market.

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