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Tesla’s ‘Catfish Effect’ is propelling China’s local EV makers forward

Credit: Tesla China/Weibo

Published

5 years ago

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When Tesla was preparing to enter the electric vehicle segment with a wholly-owned factory in China, former Industry Minister Miao Wei stated that the American EV maker’s presence would result in a “Catfish Effect” on the country’s electric car industry. Just over a year since Gigafactory Shanghai started operations, it seems like Miao’s statements are shaping up to be accurate. 

The Catfish Effect suggests that the arrival of a strong competitor will encourage “weaker” players to innovate and better themselves. Tesla, being the world leader in EVs, seems to have played the catfish in China’s EV segment last year. The Silicon Valley-based electric car maker sold 114,000 made-in-China Model 3 vehicles during the first 11 months of 2020, as per data from the China Passenger Car Association (CPCA). 

(Credit: Tesla China/Weibo)

This month, Tesla dropped another strong player in the Chinese EV market in the form of the Model Y, an all-electric crossover that is more affordable than rivals from companies like Audi, Mercedes-Benz, and BMW. Tesla formally launched the Model Y in China with a starting price of RMB 339,900 ($52,550), 30% lower than its pre-launch price. This resulted in Tesla showrooms being swamped by prospective Model Y buyers. Competitors were appropriately unnerved, as per a report from The Nikkei Asian Review. 

China has stood as the world’s largest market for electric cars. This means that China’s premier EV makers such as BYD, SAIC, NIO, and Xpeng Motors are no joke. Local electric car makers can design and create compelling EVs, but last year, most–if not all–were eclipsed by the Model 3, whose technology was a cut above its domestic rivals. Its robust set of standard features like Autopilot also gave it an edge against competitors. 

Following the launch of the Model Y in China, Yu Liguo, the president of Arcfox, an EV unit of BAIC Motor, remarked that Tesla’s advantage in the country’s EV sector would likely not be matched by local manufacturers, at least not in the near future. This is especially true in the case of features like Autopilot, which place Tesla far ahead of competitors in the Chinese EV market and globally. Despite this, Yu was optimistic, noting that Chinese EV makers would catch up eventually. 

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(Credit: Jay in Shanghai)

Pure EV companies from China are initiating programs that are aimed at expanding their business. NIO is ramping its battery-swapping network, and it recently launched a new used-car platform to make its vehicles more attainable to buyers. Xpeng Motors’ first European orders were also shipped from China to Norway. Legacy automakers such as SAIC, propelled by vehicles like the MG ZS EV, sold nearly 12,000 electric cars in Europe during the first nine months of 2020. 

Granted, Chinese-branded electric vehicles only account for about 10% of the global EV market, as per a report from UBS Securities. But thanks to the presence of Tesla, China’s electric vehicle makers may soon adopt more assertive strategies. With Gigafactory Shanghai ramping Model 3 and Model Y production, Tesla’s Catfish Effect may very well be underway in China. 

The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.

Check out a MIC Model Y delivery event video below.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Investor's Corner

Lucid denies rumors of bankruptcy after over 40% stock drop

Published

3 hours ago

on

July 14, 2026

By

Credit: Lucid

Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.

Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.

The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”

Twork said:

Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.

Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.

Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.

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Tesla owner attempts resale of Model S Signature Edition for over $260k

Published

7 hours ago

on

July 14, 2026

By

Credit: Tesla

A Tesla owner who purchased a Model S Signature Edition, one of the final 250 units of the all-electric flagship vehicle that the company discontinued earlier this year, is attempting to sell the car despite a no-resale clause that prohibits reselling for the first year.

The car is being sold by J&S Autohaus in Ewing, New Jersey, and is priced at $260,490, well above the $159,420 that Tesla sold it for earlier this year.

To those who do not know, the Model S Signature was a highly exclusive, limited-run farewell variant of the Model S Plaid that was produced this year to mark the end of production of both the Model S and Model X, Tesla’s two flagship vehicles.

Limited to just 250 units with invite-only sales, it serves as a collector’s item celebrating the legacy of the Model S, which helped pioneer Tesla’s electric vehicle success since its 2012 launch.

It bundles top-tier performance with bespoke cosmetic and luxury upgrades, plus Tesla’s Luxe Package. Here’s what the Model S Signature has over the typical Model S Plaid:

  • Exclusive Exterior – Unique Garnet Red Paint, matching door handles, gold Tesla “T” badges upfront, gold Plaid and Signature badging at the rear.
  • Premium Interior – White Alcantara upholstery with gold piping/accents, gold Plaid seat badges, Signature-marked door sills, individually numbered dashboard plaque, gold puddle lights, special interior lighting sequence, and a custom Signature key fob.
  • Performance Upgrades – Carbon-ceramic brakes with gold calipers
  • Bundled Luxe Package – Full Self-Driving (Supervised), four years of Premium Connectivity, free lifetime Supercharging
  • Performance Metrics – ~1,020 horsepower, sub-2-second 0-60 MPH, ~390-mile range

Tesla quickly introduced a No Resale Agreement for the Signature Editions of the Model S and Model X, which would penalize the seller for “the amount of $50,000 or the value received as consideration for the sale or transfer, whichever is greater.”

The company continues:

“If you sell or otherwise transfer the ownership of your Model S or Model X, the remainder of the Recommended Maintenance, Wheel and Tire Protection Plan, and Windshield Protection Plan will transfer automatically to the buyer. The Full Self-Driving (Supervised), Free Supercharging and Premium Connectivity will not transfer with the vehicle and will terminate once the ownership of the Model S or Model X is transferred.”

Tesla will likely come after the seller, especially as it has been about two months since Tesla launched deliveries.

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Tesla Full Self-Driving v14.3.5 Early Impressions: new features and early performance

Published

10 hours ago

on

July 14, 2026

By

Credit: TESLARATI

Tesla rolled out Full Self-Driving (Supervised) v14.3.5 yesterday, and about fifty miles of driving on the new version has given me enough time to highlight what seems to be strong about the release and what is not.

Additionally, Tesla has added a few new features with this specific update, which we’ll highlight as well.

Tesla Full Self-Driving v14.3.5 Performance

The new update is business as usual. Things seem to be running completely normal and necessary, but there are a few things that we’ve seemed to pick up on based on our own experience with v14.3.5, as well as what other users are seeing.

Initially, it seems to be more aware of its surroundings, making moves that are incredibly courteous to other drives and operating just a tad more reserved than what the suite might have done previously.

We had two instances where it showed this, the first being FSD needing to pass a Flagger Force vehicle that was placing down signage for the day. Their work truck was right at the front corner of a right-hand turn; typically where most cars travel when they take that turn.

FSD v14.3.5 recognized this, slowed down, and took the turn wide with no issues:

Additionally, v14.3.5 backed up for a semi truck that was making a wide turn onto a road my car was on. This is not new, but it seemed to be backing up for courtesy; it didn’t seem completely necessary, but it might have put some peace of mind in the truck driver’s head:

X user Mike P, also a Pennsylvania native like myself, shared three clips of his Tesla running v14.3.5 performing similar maneuvers. He said:

“FSD turns right into a small alley that only fits one car at a time, sees oncoming car, reverses out of alley to make space, realizes oncoming car is actually parking, re-enters alley.”
Check it out here:

It seems like Speed Profiles are still in need of some tweaking; I am adjusting what Speed Profile I’m in frequently, constantly changing it to get it to travel at the correct speed. This was an issue for me on v14.3.4. It seems like they’re just a little inconsistent.

Terrible Parking

Parking attempts on v14.3.5 were not good. There are quite a few people who have said this:

David Moss, the Tesla owner who has taken multiple coast-to-coast drives without any interventions, also has had some issues with parking early on with v14.3.5:

New Features

Tesla has added the ability to open Camera Preview at any time. Previously, it was only available in Park. Here’s what that feature looks like in action:

Check back later this week for a longer review of what we’ve noticed on Full Self-Driving v14.3.5.

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