Elon Musk
Elon Musk is facing stiff competition from Xiaomi.
  • Tesla is having a hard time in China.
  • Chinese EV makers are taking Elon Musk's company to task as they battle on price.
  • But a new vehicle in China shows local EV makers might be benefiting inadvertently from Tesla, too.

At the start of the year, Elon Musk issued a clear warning about who he thought posed the biggest challenge to Tesla's electric vehicle ambitions: Chinese EV makers.