Tesla defined the modern EV market through Silicon Valley innovation, while Chinese companies like BYD focused on vertical integration and affordability, eventually overtaking Tesla in sales in 2025 (both started operations around 2003).
Tesla’s entry into the Chinese market via the Shanghai Gigafactory (2019) acted as a "catfish," forcing local Chinese "new forces" like NIO, XPeng, and Li Auto to lower prices and accelerate technological innovation.
