Tesla wird wie Arc'teryx.

Recently, the term "Arc'teryx phenomenon" came to my mind. It describes a situation where the social and identity - defining value of a brand's logo completely outweighs or even replaces the functional value of the product itself. Then the brand no longer focuses on innovation and breakthrough, but tends to lower the access barriers and merely market the logo. Such a brand has experienced the "Arc'teryx phenomenon".

These brands usually establish themselves in the professional field in the initial stage thanks to outstanding technology and innovation. Let's take Arc'teryx as an example again. It was originally known for safety belts with hot - glue technology, GORE - TEX hardshell jackets, and the first invention of waterproof zippers. As a result, it has built a reputation as "life - saving equipment" in the professional outdoor sector.

However, after the brand became well - known beyond its core business, its core value was redefined. The brand was reshaped by new customer groups into a symbol of social status. In this case, the logo replaces the product itself and becomes a social currency and the "business card of the middle class". Consumers no longer buy the product, but only the logo printed on the clothing. At the same time, to increase sales, the brand opens up more "daily - use" product lines and no longer focuses on the pursuit of ultimate technological innovation. Ultimately, performance no longer matters. As long as the product has the logo, it can be sold.

In this regard, Tesla is currently in the state of the "Arc'teryx phenomenon". The most obvious indication is that Tesla recently introduced the affordable Model 3 Standard and Model Y Standard. In terms of technical performance, these two models have been reduced compared to the previous long - range and premium rear - wheel - drive versions. However, the price has also been lowered. The price in the United States starts at $36,990 for the Model 3 Standard and $39,990 for the Model Y Standard, which represents a reduction of $5,000 - $5,500 and a decrease of over 10%.

Positively speaking, this is an active response from Tesla to market demands. But on a deeper level, it seems to be a strategy of Tesla to increase sales with the logo: Since there are no more technological gaps, but the brand still has the "first - mover advantage" among consumers, Tesla simply reduces the equipment, lowers the price, puts the logo on it, and thus captures more potential consumers who are loyal to the brand.

The two models are currently only introduced and sold in the US market. According to the plan, overseas deliveries will start in October. In fact, although Tesla's affordable model still has a certain competitiveness in the overseas market in the same price segment, it can hardly offer an advantage over the major Chinese brands in the Chinese market. Its technological advantage in China is gradually disappearing, and it is beginning to develop into a company like Arc'teryx that relies on brand premiums.

And this change reflects the profound changes in the global electric vehicle industry structure.

01

The affordable models introduced by Tesla this time have been greatly simplified.

The Model 3 Standard has reduced its range from 358 miles to 272 miles compared to the original version. The range of the Model Y Standard has dropped from 357 miles to 321 miles. At the same time, the panoramic glass sunroof has been removed, the number of speakers has been reduced by more than half, and the steering column has been changed from electric to manual adjustment.

Behind this strategy of "reducing equipment and lowering prices" lies the drastic market pressure that Tesla is facing. According to the latest data, Tesla delivered 720,000 vehicles worldwide in the first half of 2025, representing a decrease of 13.3% compared to the previous year. This decline is much higher than expected and is the first such significant decline since 2022.

What's even worse, Tesla is facing various challenges in all major global markets. In July 2025, on the European market, BYD registered 13,503 new vehicles according to the data of the European automotive industry, representing an increase of 225% compared to the previous year. The market share rose to 1.2%, and BYD exceeded Tesla's 0.8% for the first time.

On the Southeast Asian market, in August 2025, BYD sold more vehicles than Tesla in countries such as Singapore, Thailand, and Malaysia.

And on the most important Chinese market, Tesla is under unprecedented competitive pressure.

In the first half of 2025, Tesla sold a total of 263,400 vehicles in the Chinese market, representing a decrease of 5.4% compared to the previous year. The market share has shrunk from a peak of 15% in 2020 to 7.6%.

In contrast, the performance of Chinese electric vehicle manufacturers is impressive. BYD has already surpassed Tesla in the global sales volume of pure electric vehicles for four consecutive quarters. In the third quarter, 582,522 pure electric models were sold, which is 85,423 more vehicles than Tesla. In terms of the global market share, BYD has been the world champion in electric vehicles for three quarters. In the second quarter of 2025, the market share was 22%, and the sales volume exceeded 850,000 vehicles, representing an increase of 15% compared to the previous year.

The performance of new Chinese power vehicle manufacturers is also impressive. In September 2025, Leapmotor reached the top of the new power vehicle manufacturers with 66,657 delivered vehicles. XPeng exceeded the monthly sales of 40,000 vehicles for the first time, and Xiaomi also delivered more than 40,000 vehicles, which has reordered the competition among new power vehicle manufacturers. These data show that the Chinese electric vehicle market has entered a phase of diverse competition, and Tesla's dominance has finally ended.

Comparison of data in the Chinese electric vehicle market

Behind this change lies the obvious comparison of the "cost - benefit ratio".

When comparing Tesla's affordable model with Chinese models in the same price segment, the difference in the cost - benefit ratio becomes obvious. In the price segment of 200,000 to 250,000 yuan, Chinese brands usually offer very rich equipment such as seat ventilation and massage, air suspension, and 800V fast charging.

In contrast, the affordable Model Y/3 is relatively sparsely equipped. More specifically, the simplification of the equipment is particularly obvious in the affordable Model Y Standard: the rear - seat touchscreen has been removed, the number of speakers has been reduced from 14 to 6, the steering column has been changed from electric to manual adjustment, and the panoramic glass sunroof has been removed.

In an era when the demand for electric vehicles is becoming more diverse and local, more and more consumers not only pursue basic assistant functions but also a comfortable and diverse experience. Such a significant reduction in equipment will undoubtedly bring a big difference in feeling for Chinese consumers.

What's even more important is that the FSD (Full Self - Driving) function, which Tesla is proud of, is still "not applicable" in China. Although Elon Musk has assured several times that the FSD function will be introduced in China, first by the end of 2024 and later in the first quarter of 2025, the launch time of this core function is still uncertain due to issues with data compliance, algorithm localization, and government approvals.

In contrast, Chinese automobile manufacturers have already achieved wide - scale commercial application in intelligent driving assistance. XPeng's XNGP intelligent driving assistance system already enables driverless driving without maps in many Chinese cities, including highways, urban highways, and city streets. Li Auto's AD Max intelligent driving assistance system is particularly outstanding in the city - NOA function.

This means that Tesla can hardly make a fundamental difference in the local intelligent driving assistance experience compared to its competitors in the same price segment.

02

Although Tesla no longer has an absolute or even any advantages in terms of technology and performance these days, it still has a high status in the eyes of consumers.

As a pioneer in the electric vehicle industry, Tesla has developed into a "technology symbol" in people's minds, which perfectly combines the latest technologies, unique brand charisma, and closed - loop ecosystems. Therefore, it once received a very high brand premium. When Tesla entered the Chinese market in 2014, the imported Model S cost at least 734,000 yuan (including tax and final price). The price of the top - of - the - line model exceeded 1 million yuan. In early 2019, the Model 3 was sold in China as an imported vehicle. The price of the standard long - range model was almost 430,000 yuan, and the price of the high - end long - range and performance models even exceeded 500,000 yuan.

These impressions are still deeply ingrained in consumers' minds. Ordinary consumers may not understand the technology and parameters of Tesla products, but they still accept the idea that they are "high - quality" and "technological" products. Or rather, they think that every product with the Tesla logo is still "advanced" and represents an environmentally friendly and technological lifestyle that embodies a certain value concept.

Therefore, the introduction of the affordable Model 3 Standard and Model Y Standard is a "smart" strategy.

On the one hand, by attracting users with a "Tesla complex", Tesla can actually intercept potential customers of Chinese vehicles. This part of users usually has a strong identification with the Tesla brand and is willing to pay for the brand value. Even if the equipment is somewhat reduced, they still choose Tesla. At the same time, Tesla's product philosophy also has a certain attractiveness to consumers who value battery efficiency and minimalist design philosophy. They don't care so much about the equipment or consider additional equipment such as "TV, sofa, and refrigerator" to be superfluous.

On the other hand, it exerts direct pressure on second - tier new power vehicle manufacturers (such as NIO, Leapmotor) that have weak brand strength and low profits. These brands originally carved out a living space in the entry - level market thanks to their cost advantages. However, the entry of Tesla's affordable models poses a direct threat to the market share of these brands because Tesla has stronger brand leadership and global supply - chain advantages.

Many consumers active on social media do not accept the performance and equipment of Chinese brands, but the high - level narrative based on Elon Musk and Tesla is still widely spread on social media. This subjective inclination brings an objective "arbitrage opportunity": One only needs to introduce products in the affordable price segment, put the logo on them, and then can sell them.

Yes, this "arbitrage opportunity" is more evident at the brand level than at the level of technological innovation. Tesla's core technology advantages are quickly caught up with and even surpassed by Chinese companies. In terms of the three - electric system (battery, electric motor, electronic control), technological solutions such as BYD's Blade Battery + e - Platform 3.0, NIO's 900V ecosystem, and Xiaomi's 870V silicon carbide platform are approaching and even partially surpassing Tesla's in terms of efficiency, charging speed, and heat management.

Comparison of battery technologies between BYD and Tesla

In battery technology, Tesla's technological monopoly has been completely broken. BYD's Blade Battery takes advantage of the safety and cost - effectiveness of lithium iron phosphate. It is not only widely used in BYD vehicles but also adopted by other companies such as NIO, XPeng, and Xiaomi.

In the integration of the drive system, Chinese companies also show strong technological strength. BYD's e - Platform 3.0 integrates the electric motor, battery, and electronic control at a high level, enabling higher energy density and lower manufacturing costs. The dual - electric - motor systems developed by NIO in models ET5 and ET7 outperform equivalent Tesla models in terms of performance.

In fast - charging technology, Chinese automobile manufacturers have already applied 800V fast - charging technology on a large scale. This technological approach is significantly better than Tesla's 400V architecture in terms of charging efficiency. XPeng's 800V high - voltage platform in combination with the S4 fast - charging pillar enables a charging power of up to 480 kW, and the charging time from 10% to 80% is reduced to less than 20 minutes.

NIO's 900V charging and swapping ecosystem in combination with its unique battery - swapping technology provides users with a more flexible way to charge the battery. Xiaomi's... (The text seems incomplete here)