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Global Global Is AI a bubble? Davos leaders say no

Innovation

The world is trying to log off U.S. tech

Some global users are turning to services like Proton Mail and UpScrolled instead.

A loading symbol is superimposed on a faded American flag background.
iStock/Rest of World
iStock/Rest of World
  • Countries are growing uneasy about their dependence on U.S. technology firms.
  • Companies that take on big tech platforms with alternatives have often failed.
  • Government backing and user choices can help drive innovation and staying power for non-U.S. tech companies.

In just the past week, France has banned its public officials from using American technology, more governments are considering keeping young people off Silicon Valley’s biggest social media platforms, and UpScrolled saw a surge in users over censorship fears on TikTok in the U.S. All of these moves point to a growing unease with U.S. tech firms and tech policy.

“The backlash against U.S. tech companies, and the global market dependencies on the American tech stack, is part of a broader recognition that technology is not neutral, and that the companies that produce and shape this ecosystem have social and political interests in addition to their financial interests,” Jathan Sadowski, a senior lecturer at the Emerging Technologies Research Lab at Monash University in Melbourne, told Rest of World. “I don’t think this is just a phase.”

Shortly after the TikTok deal was announced last week, handing control of its U.S. operations to a conglomerate that includes Oracle Corporation, #TikTokCensorship began trending online. Tens of thousands of users in the U.S., U.K., and Australia joined UpScrolled, a new platform that promises to be a haven for free speech. UpScrolled quickly became one of the most downloaded social media apps in the U.S., and has reached more than 1 million users.

Issam Hijazi, the Palestinian-Australian founder of UpScrolled, credits much of the platform’s recent success to a perception of politically motivated moderation on platforms like TikTok, he told Rest of World

“A lot of people were asking why there is no alternative to the big tech platforms for their content, which was getting censored,” he said. “So I thought, why don’t we build our own?”

The European Union, which has attempted to rein in big tech companies with the Digital Markets Act, is pushing homegrown options to products from Meta, Google, and Microsoft — including TomTom and Here for navigation, and Visio for video calls. At the same time, more countries are acting to keep young users off social media platforms. India, the biggest market for Facebook and YouTube, is the latest to suggest regulating access.

Paris Marx, the Canadian host of the Tech Won’t Save Us” podcast and a longtime critic of U.S. big tech companies, has been documenting his gradual — and sometimes frustrating — switch to non-U.S. alternatives. His guide lists mostly European options for email, search, maps and streaming, as well as Zoho, an Indian company that offers products similar to Google at cheaper prices.

Zoho’s Arattai messaging service, pitched as a rival to WhatsApp, is endorsed by Indian government officials pushing the “Made in India” policy. They also backed Koo as an option to X. Elsewhere In Asia, Japan’s Line super-app, and South Korea’s KakaoTalk messaging app and Naver Map are dominant in their countries, with Line also preferred in much of Southeast Asia. Line has more than 200 million monthly users, while KakaoTalk has about 55 million users. Regional ride hailing apps such as Grab and Gojek have fended off Uber, with Grab building its own mapping system.

There is a realization that U.S. tech companies’ policies and products “often fail to reflect the needs and realities of users in the global majority,” Mona Shtaya, campaigns and partnerships director in the Middle East and North Africa at lobby group Digital Action, told Rest of World.

“It is interesting to see new, locally developed and owned platforms emerge,” she said. “Their success or failure will depend on whether these platforms are genuinely responsive to community needs — and on how communities themselves participate in shaping and governing them.”

The push for non-U.S. options is also about data security. Last year, Trump signed an executive order sanctioning the International Criminal Court and its chief prosecutor, British lawyer Karim Khan, for issuing an arrest warrant against Israeli Prime Minister Benjamin Netanyahu. As part of that move, Microsoft reportedly cancelled Khan’s email address. Khan switched to the Swiss provider Proton Mail, which has over 100 million users worldwide. 

Fears of a U.S. digital “kill switch” led the ICC to drop Microsoft as a service provider, and prompted European lawmakers to question the security of cloud services provided by Amazon, Microsoft, and Google. These concerns are also pushing some countries to develop their own semiconductor industry. Chinese open-source foundation models are already enabling small countries and companies to build their own large language models.

For smaller countries, the main challenge in translating social and political criticism of U.S. tech companies into successful alternatives is funding, Sadowski said.

“Many startups, even outside of the U.S. tech stack, still depend heavily on Silicon Valley for venture capital and other forms of support to build alternatives,” he said. “If governments want to take tech sovereignty seriously — and they should — then that means building capacity for indigenous innovations and ecosystems that are disconnected from the domination of U.S. tech firms.”

UpScrolled’s Hijazi knows he faces a huge challenge, despite the surge of interest in his platform.

“I’ll be lying to you if I tell you I know the answer to how to hold on to the initial interest,” he said. “But … there is an awakening globally, and people know they have been played by the big tech companies and are looking for alternatives. I’m counting on that.”

Tech Giants

What it takes to get an H-1B visa in Trump’s America

An immigration lawyer explains the behind-the-scenes challenges of getting the coveted U.S. visa in 2026.

H1B visa cards in a pattern, featuring one card marked "APPROVED" with a glowing border and a silhouette of a person.
Rest of World/iStock
Rest of World/iStock

The U.S. will open registrations for the highly sought-after H-1B visa in about a month. Each year, the visa category receives over five times as many applications as the number of visas available. Companies that rely on H-1B to bring staff to the U.S. start preparing for these applications months in advance.

But this time, it’s different.

The coveted U.S. H-1B visa — once considered a quick ticket to the American dream — has had a tumultuous few months.

Since September last year, President Donald Trump has announced several changes to the visa category, which allows highly skilled immigrants to live and work in the U.S. for up to six years. From higher costs to increased scrutiny in the process, the uncertainty has made applicants and companies wary.

Rest of World spoke to leading immigration lawyer Poorvi Chothani to understand the behind-the-scenes challenges of getting an H-1B visa in 2026.

Chothani, founder of global immigration law firm LawQuest, has 23 years of experience with H-1B visa applications. She shares details about dwindling new applications and rising uncertainty.

This conversation has been edited for clarity and brevity. 

How are your clients navigating the challenges within the H-1B process in 2026? And are you more or less confident about getting visa approvals this year?

We are uncertain how many clients will opt for H-1B visas and how many cases each will file for. Clients are in a dilemma. They’re doing cost-benefit analysis and trying to understand how to fit their employees within higher wage levels to have a better chance at the weighted selection process while complying with the law. Even our main clients have not given us any numbers this time. Usually by now, we’d have their lists. 

More visas are being denied, and many are put on hold for extra scrutiny. There is social media vetting and discretionary denials.

If a candidate is obese or has asthma, the officer can refuse their visa.”

Then there is public charge vetting, where a visa officer checks whether the person they’re interviewing will be a risk or a burden on the U.S. government. This could mean that if a candidate is obese or has asthma, the officer can refuse their visa because they will use U.S. resources for their health.

What is the biggest apprehension for companies?

They have to be very careful so that they don’t trigger the $100,000 fee. The executive order imposing the fee is only valid for a year. But there’s no stopping [Trump] from renewing it.

Is it easier for companies to just hire within America? 

We are telling our clients that they need to be very careful even when they are offering jobs to people within the U.S. That’s because when you file a change-of-status or change-of-employer petition, you don’t have to pay the $100,000 fee. But if there’s something in the candidate’s personal background, like a drunk driving case or a criminal record or a period of unlawful presence, United States Citizenship and Immigration Services will approve the petition, but then say this person needs to go for consular processing, and that would trigger the $100,000 fee. 

Since the fee doesn’t apply to international students on F-1 visas changing status or H-1B workers switching jobs, is it better to hire talent from these groups?

Our clients are encouraging their business heads to identify foreign students who’re graduating from university, because at least that won’t trigger the $100,000 fee. But with the new lottery criteria, their chances of selection are very low.

Companies are scared of poaching, too.”

Companies are scared of poaching, too. Our clients ask us if they will have to pay the $100,000 fee if they poach talent. While we tell them that they won’t have to pay that fee, we do remind them that they will also be victims of poaching by other companies.

With the H-1B under fire, are other visa categories becoming more popular among your clients?

Many companies are trying to use O-1 or L-1 visas for specialized knowledge workers or managers, but I don’t think that’s a good strategy. Everyone who would qualify for an H-1B does not qualify for L-1, and trying to fit them into that is like fitting a square peg into a round hole.

I always say that whatever we do now is coming back to bite us. Overuse of the H-1B has come back to bite us. If we overuse the O-1 or L-1 categories, authorities are going to clamp down on those, too. It’ll just take one letter from the president, one executive order. But then companies don’t understand. They’re axing their own foot.

Is misinformation about the rapidly changing H-1B rules hurting applicants?

There are Instagram influencers who’re saying, “I got my O-1 visa or EB-1A or Einstein visa, and this is how you can do it.” That’s all misuse of the system.

If you falsely enhance your profile and get an EB-1 approved, you are going to get tripped up with misrepresentation and fraud. But this is the current trend. Influencers, consultants, and agents are bypassing real lawyers with real knowledge.

Are Indians, who comprise three-quarters of the H-1B pool, still vying for the visa?

India has so many people who are qualified, and I don’t think we have the ecosystem to absorb all of them. There is still a glitter and a glamour about America and American life. So I would say for every one person that doesn’t want to go, there are nine people who are still seeing the American Dream.

Tech Giants

Is AI a bubble? Davos leaders say no

From fears of a bubble to layoffs to humanoid robots, here’s all you need to know about the big tech conversations in Switzerland.

A thoughtful person with short hair is pondering while seated at a podium, with a backdrop reading "World Economic Forum."
Krisztian Bocsi/Bloomberg/Getty Images
Krisztian Bocsi/Bloomberg/Getty Images

More than 84 world leaders, 800 CEOs, and thousands others gathered amid the Alps this week to attend the World Economic Forum’s annual meeting in Davos, Switzerland.

Artificial intelligence — bubbles, jobs, robots, and surveillance — dominated tech-related panels and conversations at the summit. From Elon Musk’s vision for humanoid robots to Larry Fink’s bullish take on AI and Dario Amodei’s warnings, here’s what Davos revealed about the state of AI.

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Is the AI bubble bursting?

Several moderators brought up the much-debated topic of the AI industry being in a bubble — a scenario where company valuations far exceed their current tangible value. Industry leaders approached the question from various angles but reached the same conclusion: All is well.

On the sidelines of the event, BlackRock CEO Larry Fink told Bloomberg TV he “sincerely believes” there is no bubble in the AI space.

What I see is this smooth exponential line.”

“I don’t think there’s any uncertainty about AI,” said Fink, also the co-chairperson of the WEF. “Hundreds of billions of dollars are needed to build this out. The capex is going to drive more global growth. … That being said, like in everything else in capitalism, there are going to be some big failures. … There are going to be some huge winners and some losers. But I believe the needed capital to build out AI is one of the great opportunities for the world to come.” 

Anthropic CEO Dario Amodei said that while the public opinion on AI has “oscillated wildly” over the years, as an industry insider, he believes the technology has continued on the same trajectory.

“Every three to six months, we have this reversal of polarity where the media is incredibly excited about what the technology can do: It’s going to change everything.  And then [after some time] it’s all a bubble. It’s all going to fall apart,” he said. “What I see is this smooth exponential line. … And that march has just been constant.”

What jobs is AI replacing?

Layoffs and the future of jobs amid AI advancement were among the most-discussed topics.

While several speakers appeared to be skirting the subject by emphasizing that bots and humans could co-work, Nvidia CEO Jensen Huang said AI was, in fact, creating high-paying “tradecraft” roles for plumbers, electricians, and steelworkers. Salaries for some of these workers in the U.S. have doubled, he said, reaching six figures in certain cases.

Jobs, jobs, jobs! It’s incredible.”

“Energy [sector] is creating jobs. Chips industry is creating jobs. The infrastructure layer is creating jobs. Jobs, jobs, jobs! It’s incredible,” Huang said. “This is the largest infrastructure buildout in human history. That’s going to create a lot of jobs. And it’s wonderful that the jobs are related to tradecraft. … Everybody should be able to make a great living. You don’t need to have a Ph.D. in computer science to do so, and I’m delighted to see that.”

Amodei said AI had the power to create a world where economies were growing fast, but that would not result in more jobs. He called it the “bad side of things,” and a “risk.”

“The signature of this technology is it’s going to take us to a world where we have very high GDP growth and potentially also very high unemployment and inequality. Now, that’s not a combination we’ve almost ever seen before,” Amodei said. 

He gave the example of engineers at his company who use AI to write code, and then edit it themselves. But as AI advances, he said, they might not have any work left to do.

“There are still things for the software engineers to do. It’s like even if the software engineers are only doing 10% of it, they still have a job to do, or they can take a level up. But that’s not going to last forever,” he said.

Watch: Nvidia CEO Jensen Huang speaks at the WEF

Will Tesla’s Optimus robots replace humans?

The conversations around robots, robotics, and robotic agents at the Davos panels included their impact on humans, livelihood, and the environment.

Musk surprised many when he said Tesla could start selling humanoid robots to the general public by the end of 2027. Tesla has been working on a general-purpose robot called Optimus for over five years. Musk has said the robot will eventually be able to handle everything from factory work to domestic chores.

There will be more robots than people.”

“My prediction is that there will be more robots than people [on Earth],” Musk said. “If you have billions of humanoid robots — and I think there will be — I think everyone on Earth is going to have one and is going to want one because you would want a robot to — assuming it’s very safe — to watch over your kids, take care of your pets. … There aren’t enough young people to take care of the old people. So, if you had a robot that could take care of and protect an elderly parent, that would be great. That would be an amazing thing to have. And I think we will have those things.”

In response to a follow-up question about human purpose in a scenario when there are more robots than humans, Musk quipped, “Nothing is perfect.”

“You can’t have work that has to be done and [an] amazing abundance for all,” he said.

Watch: Tesla CEO Elon Musk at the WEF

On AI in surveillance

Amodei said AI had become sophisticated enough to make individualized propaganda, break into any computer system in the world, surveil everyone in a population, and detect dissent and suppress it.

Calling this trend “really scary,” he said that more needs to be done to stop powerful AI surveillance technologies from being made available to autocratic governments.

“I am concerned that AI may be uniquely well-suited to autocracy and to deepening the repression that we see in autocracies,” Amodei said. He said governments need to put more focus on strategies, such as targeted policies of not selling chips to certain nations, to keep the threat of surveillance in check.

Watch: Anthropic CEO Dario Amodei at the WEF

AI in sustainable tech

The biggest limiting factor to the growth of AI is electrical power, Musk said. He spoke about the role solar energy could play in overcoming this challenge.

“We’re seeing the rate of AI chip production increase exponentially, but the rate of electricity being brought online is 4% a year max,” he said.

There’s so much room in space.”

He praised China for its growth in electricity production and said the country was able to achieve that because of its focus on solar.

“Solar is by far the biggest source of energy. Even on Earth, but certainly beyond Earth,” Musk said. “That’s why one of the things we’ll be doing with SpaceX within a few years is launching solar-powered AI satellites because the space is really the source of immense power, and then you don’t need to take up any room on Earth. There’s so much room in space, and you can scale to ultimately hundreds of terawatts a year.”

AI and geopolitics

When asked whether businesses and government were doing enough to prepare for the impact of AI, Amodei responded with an unequivocal “no.”

He said there was a need to closely observe how and where AI was being used, and until that is done, any policy is going to be blind and misinformed. “Many policies have gone wrong because they’re based on premises that are fundamentally incorrect,” Amodei said.

China Outside China

Six years, two presidents, and one app: TikTok’s U.S. saga explained

ByteDance says a group of investors led by Oracle, Silver Lake, and MGX will set up a U.S.-focused TikTok to avoid a federal ban.

A man in a suit is smiling, holding up both a thumbs up and a thumbs down graphic against a pink background.
Munira Mutaher/Rest of World/Redux
Munira Mutaher/Rest of World/Redux

China’s ByteDanceiByteDanceByteDance is a Chinese internet technology company that owns TikTok and Douyin, a Chinese version of TikTok with a successful e-commerce arm.READ MORE has struck a deal with a clutch of investors to set up a new U.S.-focused TikTok that complies with the country’s regulatory requirements.

ByteDance will retain a 19.9% stake in the new TikTok, which will be “majority American-owned,” the Chinese company said in a statement. The new entity will have three managing investors — private equity firm Silver Lake, software giant Oracle, and Emirati investment firm MGX — each holding 15%. Investors in the U.S.-focused TikTok also include the Dell family office, and Yuri and Julia Milner’s Virgo LI, among others.

The joint venture “will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,” the statement said. This would enable “more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience.”

TikTok’s former head of operations, Adam Presser, will be the chief executive officer of U.S. TikTok.

The battle over TikTok in the U.S. has spanned two presidencies, multiple court rulings, and a growing technological standoff between Washington and Beijing. What began in 2020 as a national security order from President Donald Trump in his first term has evolved into one of the most complex and high-profile tech regulation cases in the world.

Here’s how it all unravelled:

August 2020 – President Trump orders the U.S. Department of Commerce to restrict businesses from dealing with TikTok’s parent company ByteDance, claiming the Chinese government has access to user data gathered by the social media app — a charge the company denies. 

The order gives ByteDance a 45-day ultimatum to sell a majority stake in TikTok to an American entity, and requires companies like Google and Apple to remove TikTok from their app stores in the U.S.

August 2020 –  ByteDance files a lawsuit against Trump, saying it was “shocked” by the executive order and would “pursue all remedies available.”

September 2020 – TikTok wins in court. A federal judge blocks the government’s decision to stop the app’s operations in the country.

January 2021 President Joe Biden takes office.

June 2021 – Biden revokes Trump’s executive order, stating that the decision to ban the app should be based on an “evidence-based approach.” He orders the U.S. Department of Commerce to review apps designed and developed by those in “the jurisdiction of a foreign adversary,” such as China, to see if they pose a risk to national security.  

April 2024 – The U.S. Congress passes bills to protect Americans from apps built by foreign adversaries, which brings the TikTok ban back to the table. Biden signs the bill and gives ByteDance 270 days to sell TikTok. Failure to do so would lead to TikTok being banned from U.S. app stores.

April 2024 — The Chinese company contests the new mandate and threatens legal action. ByteDance CEO Shou Zi Chew, in a video posted on TikTok, tells users the company isn’t going anywhere.

November 2024 – Trump wins the presidential election, cementing his return to the White House. 

December 2024 – The federal Court of Appeals upholds the ban on TikTok. The company requests that the ruling be paused while it attempts to get the Supreme Court to hear the case. The Supreme Court agrees to hear the case.

President-elect Trump files a request to the Supreme Court seeking a delay in the implementation of the TikTok ban until he takes office on January 20. The court declines, and later issues a ruling to uphold the TikTok ban.

January 2025 – TikTok shuts down in the U.S. on January 18. But 12 hours later, President-elect Trump says he intends to extend the TikTok ban’s deadline, promising to “make a deal to protect our national security.” 

On January 20, his first day in office, Trump signs an executive order, delaying the ban for 75 days and instructs the U.S. Attorney General to not enforce the law. The app, however, remains unavailable on digital stores.

February 2025 – TikTok returns to Apple and Google app stores in the U.S. Trump says the 75-day ban on TikTok could be extended.

April 2025 – The February extension ends, and Trump announces another 75-day extension, saying the TikTok deal “requires more work” to get the needed approvals. ByteDance says talks are ongoing, though any potential deal is subject to Chinese law.

According to Reuters, China pauses the negotiations between ByteDance and the U.S. government in a tit-for-tat move after Trump imposes sweeping tariffs on Chinese imports. Beijing believes the TikTok ban is a strategy to curb China’s technological advances and that the U.S. is using national security concerns as a pretext to suppress foreign competitors.

July 2025 – Trump says a buyer for TikTok will be revealed “in the coming weeks,” adding it is “a group of very wealthy people.”

July 2025 – Reuters reports TikTok staff are working on M2, a new version of the app that will be available only in the U.S. The new app is reportedly set to launch on September 5, 2025, with the old TikTok app becoming unusable in March 2026.

August 2025 – The White House launches an official TikTok account with a video of Trump saying, “I am your voice.” The video caption reads: “America we are BACK! What’s up TikTok?”

September 2025 –  U.S. Treasury Secretary Scott Bessent meets his Chinese counterparts in Madrid, Spain. He tells reporters the September 17 deadline for TikTok’s ownership switch motivated the Chinese side to reach an agreement, as they did not want the app to go dark for American users. He hints that the deadline could be extended by 90 days to allow the agreement take shape. 

January 2026 – ByteDance announces the setting up of a joint venture with a clutch of “majority American” investors to launch a U.S.-focused TikTok that meets the country’s data security requirements.

Innovation

Is a billion dollars still cool?

Startups valued at $1 billion or more were once so rare they were termed “unicorns.” Not anymore.

A fantasy scene featuring a cracked unicorn statue surrounded by various animals in a lush green setting with a rainbow in the background.
Nicolas Ortega for Rest of World
Nicolas Ortega for Rest of World

In the 2010 film “The Social Network,” early Facebook employees discuss the money-making potential of their new site. “A million dollars isn’t cool,” someone says to Mark Zuckerberg (played by Jesse Eisenberg). “You know what’s cool? A billion-dollar valuation.”

Fifteen years later, the publicly traded company now known as Meta is worth around $1.6 trillion. And although startups valued at $1 billion or more were once so rare they were termed “unicorns,” that has changed with the fast-money era of megadeals. These creatures are no longer so mystical: today there are 1,569 active unicorns, according to the private market data platform Pitchbook.

The shift began in the 2010s. Low interest rates fueled an era of easy money that venture capital shoveled into startups, chasing growth at all costs. The situation was supercharged by the Covid-19 pandemic. As lockdowns limited investors’ ability to travel, big deals were quickly hashed over Zoom, while tech stocks benefited from the sentiment that people would be living through their computers for the foreseeable future. More than 630 new unicorns were minted in 2021 alone. 

One way to understand how this happened: the story of Tiger Global. The hedge fund and venture firm has earned an outsized reputation for its fast-paced, big-money, “spray-and-pray” style of investing, writing giant checks in hopes that a small number of them will yield even bigger returns. In 2021, Tiger was the most prolific venture investor in the world. But the strategy Tiger embodied also comes with risks — for investors, and the companies they fund.

As the pandemic waned, interest rates spiked, geopolitical tensions rose, and company exits ground to a halt. Startups that had ridden wave after wave of investment to stay afloat found themselves beached, leading to mass layoffs. Some even shut down.

Some of Tiger’s bets failed in a major way. The crypto platform FTX crumbled, and its founder Sam Bankman-Fried was convicted of fraud. The $22 billion Indian edtech firm Byju’s went bankrupt amid a flurry of lawsuits. A co-founder of the Indian car-servicing startup GoMechanic openly admitted to financial misreporting, saying he’d done it in the name of pursuing “growth at all costs.”

Tiger Global’s hedge fund fell a whopping 56% in 2022. In 2023, Tiger only struck about 40 venture deals — down from 300 the year before. That year, global venture funding fell to an eight-year low. There were only 133 unicorns minted in 2023.

With the AI boom, though, big investments are returning. During the early pandemic years, Tiger invested in several AI firms that have now achieved unicorn status. It backed Scale AI in 2020, for example, and OpenAI in 2021. Meta invested more than $14 billion in Scale AI in June, while OpenAI is reportedly eyeing a $1 trillion IPO.

As another bubble grows, what will be the fate of the unicorns it helps create? And has anyone learned their lesson from last time?

For more, read the feature “Big bets and broken unicorns: Tiger Global’s rise and reckoning,” by Issie Lapowsky.

EV Revolution

Tesla is losing the EV race. Its stock keeps winning

The U.S. carmaker’s valuation is soaring on robotaxi dreams. Its shipments tell a different story.

A Tesla showroom featuring three models parked outside under bright signage and a modern, colorful facade.
Tesla/Rest of World
Tesla/Rest of World

Tesla sold fewer cars for the second year in a row in 2025.

The company’s annual deliveries fell 8.6% to 1.6 million vehicles, according to its investor relations filing, the steepest annual decline in the company’s history.

In Europe, sales dropped 28%, with Germany down 48% and France down 38%. In China, where Tesla faces intense competition from domestic manufacturers, sales hit a three-year low in October.

The sales decline hasn’t affected Tesla’s stock price. Shares reached an all-time high of $489.88 on December 16, and the company remains the world’s most valuable automaker. Investors are betting on Tesla’s autonomous driving and robotics ventures rather than its vehicle sales.

Reality is catching up to Tesla in China, according to Tu Le, founder of Detroit–based consulting firm Sino Auto Insights, who spoke to CNBC. Tesla has relied on price cuts to maintain sales of vehicles that are now four and five years old, but the strategy is no longer working against faster-moving rivals like BYDiBYDBYD Auto is a Chinese carmaker that became the world’s leading EV manufacturer in 2023, competing with Tesla for market share and global attention.READ MORE, Xiaomi, and XPeng, he said.

While Tesla’s sales contracted, China’s BYD became the world’s largest EV seller. The company delivered 2.26 million EVs in 2025, a 28% increase from the previous year, outselling Tesla by more than 600,000 vehicles. BYD can’t sell in the U.S., where 100% tariffs block Chinese passenger vehicles.

The gap between the two companies is widest in price-sensitive markets. In July last year, Tesla entered India, where its Model Y sells for about $70,000 due to import duties. BYD operates in 52 countries, offering entry-level models starting at around $10,000 in China.

In Thailand, Southeast Asia’s largest EV market, the top five brands are all Chinese. BYD’s overseas sales surpassed one million vehicles in 2025, up 150% from the previous year.

Tesla has long promised an affordable car priced below $25,000, but the project has been repeatedly delayed in favor of autonomous vehicle development. Without a lower-cost option, the company has struggled to compete in price-sensitive markets.

Tesla has shifted its focus to autonomous vehicles and robotics. Paid robotaxi rides began in Austin in June, and the company plans to begin production of its dedicated Cybercab vehicle in 2026.

Wall Street is buying Elon Musk’s vision of a robotaxi future. The rest of the world is buying BYDs.