Tesla Pushes China’s EV Bubble Closer to Bursting

Tesla Inc.’s new Shanghai plant has churned out super-popular Model 3 electric sedans for the past six months, catapulting the company atop the sales chart and piling the pressure on cash-strapped local rivals. There was another casualty last week.

Byton Ltd. is at least the third sizable electric vehicle startup to throw in the towel since Elon Musk started his made-in-China offensive, after Bordrin Motors and Jiangsu Saleen Automotive Technology Co. wound their operations down earlier this year. They fell victim to plummeting demand amid the trade war and coronavirus pandemic, and as the government scaled back the subsidies that turned China into the world’s biggest EV market with hundreds of producers.