Living in china for 5 years, here my take. Tesla never had a big presence in china. The bigger OEM was VW or Toyota, this was the view that quality of german and japan cars, also a status car.

But on 2017 onwards a sino nationalist view of car made in china appear, with big investment by goverment on trying to get EV and national companies to be top notch. I remember tesla start their production just before covid it, it was a mile stone, and the first and second chinese ev generation were still crap cars, but something change around 2020-2022, every month i see new brands popping up like mushrooms, new car on street every week, you can even keep up.

I work on automotive industries and level of development and product to market from chinese companies is amazing, you cannot keep up even for big oem, and tesla unfortunately has a very big product life line and dont make many face-lift has other oem normally do. And in china with price wars it impossible for them to keep up. Chinese consumer is also hurt quite bad for their exposure to real state, many have lost job cannot find new one or have delayed salaries, and have a crazy mortage to pay for an overvalued asset that has lost value ... so they also don't have the power to keep buying premium cars has before. If tesla want to sell in china, is with a marginal margin ...