Tesla Slips, Xiaomi Rises, Are Investors Looking Elsewhere?

Dear Reader,

Tesla is having a rough start to the year, with sales in France falling 26% in February, following an even steeper 63% drop in January. Across Europe, overall car sales barely changed, but Tesla’s numbers dropped by 45%, raising concerns about its ability to compete. At the same time, Tesla’s stock is down 25% in 2025, wiping out much of its recent gains.

Meanwhile, Xiaomi is making moves in the opposite direction. The Chinese tech company, known for its smartphones, has seen its stock jump 300% in the last year as it expands into the electric vehicle market. Xiaomi recently launched the SU7 Ultra, a high-performance EV, and is already working on expanding sales beyond China. The company is using the same strategy that helped it challenge Samsung in smartphones by offering advanced technology at competitive prices. Now, it’s aiming to do the same to Tesla in Electric vehicles.

For Tesla, the challenge is clear. The company has been cutting prices to boost demand, but that also means lower profits, and investors are starting to wonder if Tesla is still the leader of the EV market, or are new competitors catching up?

Tesla built its reputation on innovation, but today’s market is more crowded than ever. With Xiaomi expanding and other Chinese automakers growing fast, the EV industry is shifting, and if Tesla doesn’t find a way to boost sales and protect profits, it risks falling behind.

So is this just a temporary slowdown for Tesla, or are investors starting to move on?

Stay tuned,
Street Fin Gazette