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Tesla models Y and 3 are displayed at a Tesla dealership in Corte Madera, California, on Dec. 20, 2024.

Justin Sullivan | Getty Images

Electric vehicle-maker Tesla’s sales in China climbed to a record high last year. Sustaining that performance in 2025 could prove tricky as competition with homegrown players intensifies, analysts said.

The U.S. electric vehicle maker saw annual sales in China jump 8.8% to a record high of more than 657,000 cars in 2024. In December alone, its sales rose 12.8% from the previous month to 83,000 units, according to Tesla China.

However, Tesla has been losing market share to Chinese new-energy-vehicle players, down from 7.8% in 2023 to 6% in the January to November period last year, according to Bill Russo, founder and CEO of Automobility, who believes Tesla is “struggling to keep pace [with domestic rivals] and has a limited and aging product portfolio.”

Brand resiliency and price cuts have supported Tesla’s sales so far, said Tu Le, founder and managing director of Sino Auto Insights, but he was less certain that Tesla could keep up its momentum in 2025, given the lack of new products and increased local competition, especially from Chinese companies.

Aggressive price war

Tesla slashed the price for its best-selling Model Y in China by 10,000 yuan ($1,364.5) in late December and extended a zero-interest five-year loan plan for car buyers until the end of January.

Its best-selling Model Y now starts at 239,900 yuan after the discount, while the Model 3 sedan starts at 231,900 yuan — Tesla had cut its prices by 14,000 yuan in April — according to its website.

Still that marked a significant premium over a swath of cheaper models offered by Chinese domestic carmakers. BYD, which dominated the market with around 34% market share, prices one of its best-selling models Seagull at 136,800 yuan, and the more affordable Yuan Plus model, starting at 96,800 yuan.

TOPSHOT – People look at a BYD Seagull car by Chinese electric vehicle (EV) manufacturer BYD Auto at the Bangkok International Motor Show in Nonthaburi on March 27, 2024. (Photo by Lillian SUWANRUMPHA / AFP) (Photo by LILLIAN SUWANRUMPHA/AFP via Getty Images)

Lillian Suwanrumpha | Afp | Getty Images

As the price war extends into the new year, Li Auto introduced cash subsidies of 15,000 yuan per purchase along with a three-year zero-interest financing scheme, according to a post last Thursday on its social media Weibo account. Nio also extended a similar three-year zero-interest loan plan for its EV buyers.

The purchasing incentives came on top of Chinese authorities’ push to extend the consumer goods trade-in program, which subsidizes consumers to trade in old cars or appliances and buy new ones at a discount.

The government-subsidized trade-in program could further lower prices for both Model 3 and Model Y by up to 50,000 yuan, Tesla China said.

“Tesla has to discount aggressively to keep pace with the ongoing price war in the market,” Russo noted.

Despite dwindling market share, Tesla is unlikely to lose its ground completely in China, according to Joe McCabe, CEO and president of AutoForecast Solutions, who compared Tesla as “the Apple of cars” — an “early adopter” in the EV space with “phenomenal” technology.

“I don’t think Tesla is at risk of not surviving,” McCabe added, “all [Elon Musk] has to do is drop the price by 5%, because he can, and that will help for little blips.”

Head-to-head race

In addition to lowering prices, Chinese electric carmakers have rolled out a slew of new models, many with fancy in-car features, such as projectors, embedded refrigerators and driver-assist systems.

Meanwhile Tesla has been slow in adopting any of these features, with its product portfolio focused solely on fully electric vehicles, while its homegrown rivals have steered into plug-in hybrid cars and extended-range EV categories.

These more traditional models appeal to buyers who are “still worried about the leap to fully electric [cars],” Sam Fiorani, vice president of AutoForecast Solutions said. “Tesla has no plans for anything other than fully electric vehicles.”

Tesla needs to 'up its game' to retain leadership in EV transition: Investment strategist

The automaker’s plans of launching its full self-driving supervised system still hinges on regulatory permission in China, while several local competitors have made the advanced driver-assistance systems a basic part of their offering, including BYD.

Musk had warned in January that Chinese automakers could “demolish most other car companies in the world” unless regulators intervene with trade barriers, as the Warren Buffet-backed BYD overtook Tesla as the world’s top-selling EV company in the last quarter of 2023.

The U.S. imposed a 100% duty on Chinese EVs last September to protect its homegrown industries from the pricing pressure posed by heavily-subsidized peers from China. The European Union has also moved to impose tariffs as high as 45.3% on Chinese EV cars imported late last year, while Tesla enjoyed a lower tariff rate of 7.8%.

The trade barriers would force Chinese automakers to find buyers at home and in the “smaller, friendlier” foreign markets, adding pressure on Tesla’s sales in China and elsewhere, Fiorani added.

Tesla’s sales of China-made EV cars including exports to foreign markets fell modestly by 0.4% from a year ago to 93,766 units in December, according to CNBC’s calculation of China Passenger Car Association data.

BYD, which is subject to 17% tariff duties for car exports to European Union, still led the rank with 509,440 cars sold in December, a near 50% year-on-year jump.

—CNBC’s Evelyn Cheng and Sonia Heng contributed to this report.

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Kia’s EV sales are closing in on 500,000 with new electric SUVs, sedans, vans, and more

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Kia's EV sales are closing in on 500,000 with new electric SUVs, sedans, vans, and more

After launching a wave of new electric SUVs, sedans, crossovers, and vans, Kia is about to hit a big milestone. Kia’s EV series is expected to cross over 500,000 in cumulative global sales this month.

After Hyundai hit the half-million mark with its IONIQ series in January, it looks like Kia is right behind it. It’s been five years since Kia launched its first dedicated EV, the EV6, but the growth is expected to quickly pick up from here.

Kia set a new record, selling over 1.5 million vehicles globally in the first half of 2025. The Korean automaker credited the growth to the arrival of new models, including the EV3.

The EV3, Kia’s compact electric SUV, is already the sixth-best-selling EV in Europe through June, having arrived late last year. With over 35,000 units sold, the EV3 trails only the Tesla Model Y and Model 3, as well as Volkswagen’s ID.4, ID.7, and ID.3.

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According to local reports, Kia is expected to cross 500,000 in cumulative global EV sales this month. With 485,055 EVs sold so far, the company is about to join the half-million club.

Kia-EV3-most-popular-EV
Kia EV6 (right), EV3 (middle), and EV9 (right) Source: Kia

Kia’s EV sales are expected to top 500,000 this month

Kia’s EV sales have been climbing in recent years from 29,482 in 2021, to 83,411 in 2022, 131,242 in 2023, and 124,835 last year. This year, Kia has already sold over 116,000 EVs, but with new models rolling out, it could see even higher numbers.

The EV6 is Kia’s top-selling EV with 282,639 cumulative sales, followed by the EV3 (101,162), EV9 (79,312), and EV5 (18,621).

Kia'sEV-sales-500,000
Kia unveils EV4 sedan and hatchback, PV5 electric van, and EV2 Concept at 2025 Kia EV Day (Source: Kia)

Kia launched several new EVs, including the EV4, EV5, and PV5, that are expected to drive even more demand over the next few months. The EV4 is Kia’s first electric sedan. In Europe, it’s also sold as an electric hatchback.

Meanwhile, the PV5 is the first from Kia’s new PBV electric van business. During its PV5 Tech Day event this week, Kia revealed plans for seven new body types based on the electric van, from camper to pickup.

Kia-PV5-EV-variants
Kia PV5 tech day (Source: Kia)

Kia has already opened orders for the EV4 (sedan and hatchback) and PV5 in the UK. They will be rolling out in Europe later this year. Although the hatch isn’t expected to make the trip overseas, Kia is launching the EV4 sedan in the US in early 2026.

Following the EV4 and EV5 this year, Kia will introduce the EV2 in Europe and other global markets in 2026. The EV2 is Kia’s new compact, entry-level electric SUV.

Source: ChosunBiz, Kia

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QuantumScape (QS) Q2 2025 results: Expanded partnership with VW plus a new OEM partner

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QuantumScape (QS) Q2 2025 results: Expanded partnership with VW plus a new OEM partner

Solid-state battery developer QuantumScape has posted its quarterly fiscal report and letter to shareholders for Q2 2025. QuantumScape’s progress update includes an expanded agreement with Volkswagen Group’s battery business, PowerCo, and a new joint development agreement with an additional OEM.

As far as quarterly updates go, I personally look forward to the letter to shareholders from QuantumScape ($QS) four times a year. The solid-state battery developer continues to improve its technology and production techniques, pushing closer than ever to delivering mass-produced energy-dense cells to market.

Last month, QuantumScape reported that its proprietary Cobra solid-state separator process had been fully integrated into its baseline production processes, achieving a 2025 goal while enabling gigawatt-level solid-state cell production.

QS said the Cobra breakthrough is expected to lay the groundwork for higher-volume B1 sample production of its flagship QSE-5 cells, which will eventually lead to scaled production for the battery market.

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Furthermore, the technology supports QuantumScape’s licensing model with PowerCo, a division of Volkswagen Group, which was announced a little over a year ago. As part of its Q2 2025 report, QuantumScape shared details of an expanded deal with PowerCo among several other exciting updates.

QuantumScape Q2 2025
(clockwise from bottom left) Siva Sivaram, QS CEO; Dr. Günther Mendl, Head of Center of Excellence Battery, Volkswagen AG; Sebastian Schebera, Head of Strategic
Partnerships, Volkswagen AG; Dennis Segers, QS Board Chairman; Jupp Kaufer, VP of Product Management and Corporate Quality, PowerCo / Source: QuantumScape

QuantumScape ended Q2 2025 with runway through 2029

All details outlined below are available in QuantumScape’s Q2 2025 Letter to Shareholders. Per the company, its capital expenditures were $8.3 million in Q2, primarily spend on facilities and equipment purchases to
prepare for higher-volume QSE-5 B1 sample production using the Cobra separator process mentioned above.

GAAP operating expenses and GAAP net loss in Q2 were $123.6 million and $114.7 million, respectively. Adjusted EBITDA loss was $63 million in Q2 (in line with expectations). Per the letter:

We continue to streamline operations consistent with the company’s capital-light licensing focus and capture gains from cost reduction initiatives and process improvement, including the Cobra process. We narrow the range of our full-year guidance for Adjusted EBITDA loss to $250M – $270M. We ended Q2 with $797.5M in liquidity and extend our guidance for cash runway into 2029, a six month improvement over our previous guidance. Any additional funds from other customer inflows or capital markets activity would further extend this cash runway.

As hinted above, QuantumScape’s Q2 2025 update also included news of an expanded deal with PowerCo, which entails the latter company contributing an additional $131 million to the former over the next two years. That amount will come in addition to the original $130 million committed by Volkswagen Group’s battery arm if and when QS delivers “satisfactory technical progress and execution of the full licensing agreement.”

In exchange for the additional funding, QuantumScape will prioritize QSE-5 cells manufactured on its San Jose pilot line to support its joint development agreement with PowerCo. That said, QS still maintains a non-exclusive arrangement and has the right to provide cells to our other customers.

Speaking of which!

QuantumScape’s Q2 2025 report also includes news of an additional joint development agreement (JDA) with “another major global automotive OEM.” Although QS did not name the OEM, it did say the JDA builds off an existing relationship, as the client was a solid-state sample customer. Unfortunately, QS keeps that client list close to its chest, so we’d rather not speculate on who the new joint development partner could be, but it’s exciting news nonetheless.

Looking ahead beyond Q2, QuantumScape is set on its second goal for 2025 – installing higher-volume cell production equipment to support scaled solid-state cell production. From there, QS is looking to ship more samples of its prototype cells and has shared a more concrete timeline for actual field testing. Per the letter:

We are working closely with our launch customer, and in Q2 we shipped QSE-5 cells for pack integration and testing, including safety testing. These cells were the final Raptor-based B0 samples to be shipped; future shipments will be Cobra-based B1 samples, in line with our third annual goal. This launch program is designed to be a low-volume, high-visibility project that will allow us to put our cells into a real-world vehicle application and generate customer feedback. We continue to target 2026 for the beginning of field testing.

That’s all for now. Be sure to check back with Electrek soon for the latest solid-state battery and other electric mobility news.

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Mercedes-Benz is already testing solid-state batteries in EVs with +600 miles range

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Mercedes-Benz is already testing solid-state batteries in EVs with +600 miles range

The “holy grail” of electric vehicle battery tech may be here sooner than you’d think. Mercedes-Benz is testing EVs with solid-state batteries on the road, promising to deliver over 600 miles of range. Here’s when you can expect to see it hit the market.

Mercedes moves to launch EVs with solid-state batteries

Earlier this year, Mercedes marked a massive milestone, putting “the first car powered by a lithium-metal solid-state battery on the road” for testing. Mercedes has been testing prototypes in the UK since February.

The company used a modified EQS prototype, equipped with the new batteries and other parts. The battery pack was developed by Mercedes-Benz and its Formula 1 supplier unit, Mercedes AMG High-Performance Powertrains (HPP)

Mercedes is teaming up with US-based Factorial Energy to bring the new battery tech to market. In September, Factorial and Mercedes revealed the all-solid-state Solstice battery.

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The new batteries, promising a 25% range improvement, will power the German automaker’s next-generation electric vehicles.

According to Markus Schäfer, the automaker’s head of development, the first Mercedes EVs powered by solid-state batteries could be here by 2030.

Mercedes-EVs-Solid-state-batteries
Mercedes EQS modified with a solid-state battery (Source: Mercedes-Benz)

During an event in Copenhagen, Schäfer told German auto news outlet Automobilwoche, “We expect to bring the technology into series production before the end of the year.”

In addition to providing a longer driving range, Mercedes believes the new batteries can significantly reduce costs. Schäfer said current batteries won’t suffice, adding, “At the core, a new chemistry is needed.” Mercedes and Factorial are using a sulfide-based solid electrolyte, said to be safer and more efficient.

Mercedes claims the new battery can extend driving range by around 25%. With the Mercedes EQS 450+ rated with a WTLP range of 511 miles, that would suggest over 620 miles of range.

Mercedes-EVs-solid-state-batteries
Mercedes-Benz starts road testing first solid-state battery vehicle (Source: Mercedes-Benz)

Factorial is collaborating with other leading OEMs, including Hyundai and Stellantis, to introduce solid-state EV batteries to the market by 2030.

Several others, including Volkswagen, BMW, Toyota, Nissan, and Honda, are all advancing the promising new batteries. And don’t forget BYD and CATL, which are already dominating global sales, are also quickly advancing new EV batteries, including solid-state.

Earlier this week, MG’s brand manager, Chen Cui, claimed that the new MG4 will be the first mass-market EV sold globally with semi-solid-state batteries.

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