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Tesla’s price war could reshape the Chinese auto industry, and some players may not survive
It remains to be seen if Tesla was aware that its aggressive pricing strategy would create havoc in the Chinese auto market. But it has, and analysts have noted that some of China’s weaker players may not survive the aftermath.
China is the world’s largest electric vehicle market. Thus, Tesla is fully aware of the country’s importance for its global operations. It was then no surprise that the electric vehicle maker implemented pricing adjustments for its domestically-made vehicles in October. This was followed up by more price cuts in January, which brought the costs of the Giga Shanghai-made Model 3 and Model Y up to 14% cheaper than last year and substantially cheaper than their counterparts from the US and Europe.
Rival automakers have lowered their prices in response to Tesla’s recent price cuts. Companies like Volkswagen AG and Mercedes-Benz Group AG are offering discounts of up to 70,000 yuan ($10,000) in China. Ford has also lowered the Mach-E’s starting price to about 209,900 yuan. This left competitors like Xpeng Inc. and Nio Inc. with little choice but to follow suit.
As noted in a Bloomberg News reports, at least 30 automakers have cut prices in China. Jochen Siebert, managing director of JSC Automotive, for his part, noted that Tesla’s pricing strategy affected the Chinese auto segment. “Tesla created havoc for the rest of the market,” Siebert said.
The havoc caused by Tesla has not gone unnoticed. On Wednesday, the China Association of Automobile Manufacturers urged an end to the price war. The CAAM noted that the price war was not a long-term solution to the country’s current slowdown in sales and inventory accumulation. The association also stressed the need for the industry to “return to normal operation” to ensure healthy development.
Other automakers are preparing for more challenging months ahead. During an interview with Bloomberg Television on Wednesday, Nio Chief Financial Officer Steven Feng noted that China’s auto industry is going through a “very profound shuffle.” “We need to go through this price war at the beginning of the year, and then we expect the industry to go through some profound fundamental consolidation. It’s almost consensus that China now has too many automakers,” the executive said.
China’s auto sector is extremely competitive, with 155 new battery electric and plug in hybrid vehicles set to be unveiled this year alone. In response to this, financially stronger players such as Tesla could easily maintain, if not escalate, their aggressive pricing strategies to protect and grow their market share. Other automakers, however, may not be as fortunate. Siebert noted that Tesla has “several billion dollars that they can use for this purpose while others don’t.”
Morgan Stanley analysts have noted that apart from Tesla, BYD should also be capable of carrying out another round of price cuts. The analysts stated that Tesla’s price war came on faster and more severely than expected, and they also noted that it will “expedite a market reshuffle.” Tu Le, managing director of consultancy Sino Auto Insights, highlighted this in a statement. “It’s going to stay brutal through mid-2024. It’s really existential for some of the weaker players,” the executive said.
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Elon Musk’s Grokipedia surges to 5.6M articles, almost 79% of English Wikipedia
The explosive growth marks a major milestone for the AI-powered online encyclopedia, which was launched by Elon Musk’s xAI just months ago.
Elon Musk’s Grokipedia has grown to an impressive 5,615,201 articles as of today, closing in on 79% of the English Wikipedia’s current total of 7,119,376 articles.
The explosive growth marks a major milestone for the AI-powered online encyclopedia, which was launched by Elon Musk’s xAI just months ago. Needless to say, it would only be a matter of time before Grokipedia exceeds English Wikipedia in sheer volume.
Grokipedia’s rapid growth
xAI’s vision for Grokipedia emphasizes neutrality, while Grok’s reasoning capabilities allow for fast drafting and fact-checking. When Elon Musk announced the initiative in late September 2025, he noted that Grokipedia would be an improvement to Wikipedia because it would be designed to avoid bias.
At the time, Musk noted that Grokipedia “is a necessary step towards the xAI goal of understanding the Universe.”
Grokipedia was launched in late October, and while xAI was careful to list it only as Version 0.1 at the time, the online encyclopedia immediately earned praise. Wikipedia co-founder Larry Sanger highlighted the project’s innovative approach, noting how it leverages AI to fill knowledge gaps and enable rapid updates. Netizens also observed how Grokipedia tends to present articles in a more objective manner compared to Wikipedia, which is edited by humans.
Elon Musk’s ambitious plans
With 5,615,201 total articles, Grokipedia has now grown to almost 79% of English Wikipedia’s article base. This is incredibly quick, though Grokipedia remains text-only for now. xAI, for its part, has now updated the online encyclopedia’s iteration to v0.2.
Elon Musk has shared bold ideas for Grokipedia, including sending a record of the entire knowledge base to space as part of xAI’s mission to preserve and expand human understanding. At some point, Musk stated that Grokipedia will be renamed to Encyclopedia Galactica, and it will be sent to the cosmos.
“When Grokipedia is good enough (long way to go), we will change the name to Encyclopedia Galactica. It will be an open source distillation of all knowledge, including audio, images and video. Join xAI to help build the sci-fi version of the Library of Alexandria!” Musk wrote, adding in a later post that “Copies will be etched in stone and sent to the Moon, Mars and beyond. This time, it will not be lost.”
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Tesla Model 3 becomes Netherlands’ best-selling used EV in 2025
More than one in ten second-hand electric cars sold in the country last year was a Tesla Model 3.
The Tesla Model 3 became the most popular used electric car in the Netherlands in 2025, cementing its dominance well beyond the country’s new-car market.
After years at the top of Dutch EV sales charts, the Model 3 now leads the country’s second-hand EV market by a wide margin, as record used-car purchases pushed electric vehicles further into the mainstream.
Model 3 takes a commanding lead
The Netherlands recorded more than 2.1 million used car sales last year, the highest level on record. Of those, roughly 4.8%, or about 102,000 vehicles, were electric. Within that growing segment, the Tesla Model 3 stood far ahead of its competitors.
In 2025 alone, 11,338 used Model 3s changed hands, giving the car an 11.1% share of the country’s entire used EV market. That means more than one in ten second-hand electric cars sold in the country last year was a Tesla Model 3, Auto Week Netherlands reported. The scale of its lead is striking: the gap between the Model 3 and the second-place finisher, the Volkswagen ID3, is more than 6,700 vehicles.
Rivals trail as residual values shape rankings
The Volkswagen ID.3 ranked a distant second, with 4,595 used units sold and a 4.5% market share. Close behind was the Audi e-tron, which placed third with 4,236 registrations. As noted by Auto Week Netherlands, relatively low residual values likely boosted the e-tron’s appeal in the used market, despite its higher original price.
Other strong performers included the Kia Niro, the Tesla Model Y, and the Hyundai Kona, highlighting continued demand for compact and midsize electric vehicles with proven range and reliability. No other model, however, came close to matching the Model 3’s scale or market presence.
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Tesla Model Y Standard Long Range RWD launches in Europe
The update was announced by Tesla Europe & Middle East in a post on its official social media account on X.
Tesla has expanded the Model Y lineup in Europe with the introduction of the Standard Long Range RWD variant, which offers an impressive 657 km of WLTP range.
The update was announced by Tesla Europe & Middle East in a post on its official social media account on X.
Model Y Standard Long Range RWD Details
Tesla Europe & Middle East highlighted some of the Model Y Standard Long Range RWD’s most notable specs, from its 657 km of WLTP range to its 2,118 liters of cargo volume. More importantly, Tesla also noted that the newly released variant only consumes 12.7 kWh per 100 km, making it the most efficient Model Y to date.
The Model Y Standard provides a lower entry point for consumers who wish to enter the Tesla ecosystem at the lowest possible price. While the Model 3 Standard is still more affordable, some consumers might prefer the Model Y Standard due to its larger size and crossover form factor. The fact that the Model Y Standard is equipped with Tesla’s AI4 computer also makes it ready for FSD’s eventual rollout to the region.
Top Gear’s Model Y Standard review
Top Gear‘s recent review of the Tesla Model Y Standard highlighted some of the vehicle’s most notable features, such as its impressive real-world range, stellar infotainment system, and spacious interior. As per the publication, the Model Y Standard still retains a lot of what makes Tesla’s vehicles well-rounded, even if it’s been equipped with a simplified interior.
Top Gear compared the Model Y Standard to its rivals in the same segment. “The introduction of the Standard trim brings the Model Y in line with the entry price of most of its closest competition. In fact, it’s actually cheaper than a Peugeot e-3008 and costs £5k less than an entry-level Audi Q4 e-tron. It also makes the Ford Mustang Mach-E look a little short with its higher entry price and worse range,” the publication wrote.
Elon Musk’s Grokipedia surges to 5.6M articles, almost 79% of English Wikipedia
Tesla Model 3 becomes Netherlands’ best-selling used EV in 2025
