Text / Business Ethics Observer
The epitaph of KaLide navigation reads: 'Here lies all the enterprises that imagined conquering China through functional unbundling.'
Now, Tesla is engraving the same epitaph for itself — when 'tricks' become the company's DNA, death is the only return path.
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I. Blood-red twilight: The rise and fall of the Shanghai factory.
In spring 2025, the capacity utilization rate at Tesla's Shanghai Gigafactory showed a significant adjustment. Outside the factory, the truck fleet that once queued overnight for deliveries is no longer there; instead, second-hand car dealers hold up signs saying 'We buy Tesla at high prices,' but the prices underneath make one feel cold:
• Model 3 refreshed version: official guide price of 229,900 yuan, some second-hand platforms list prices below 130,000 yuan, with a residual value rate of about 57%.
• Vehicles with optional FSD: depreciate more compared to non-optional versions — buyers are concerned about 'subsequent recurring charges.'
Inside the factory, some production lines are temporarily shut down. Three years ago, Musk celebrated a monthly delivery of over 80,000 units here; today, only mountains of **'paid unlock packages'** remain in the warehouse — seat heating modules, auxiliary chips, electric tailgate controllers... Consumers are no longer willing to pay for 'half a car and unlock features monthly,' and these accessories eventually become electronic waste.
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II. Death gene: The three original sins of replicating KaLide-style commercial fraud.
Tesla's defeat is not due to technical errors, but stems from its 'functional unbundling' business strategy colliding completely with the bottom line of Chinese consumers:
1. Function slicing: Crossing the ethical red line of Chinese consumerism.
The subscription logic effective in North America has evolved into a 'cutting leeks model' in China —
• In the cold winter, users are prompted to pay 240 yuan monthly to enable seat heating;
• During driving, power steering is bundled into the 'safety enhancement package' and charged annually.
This is not only understood as 'technological innovation,' but also labeled by angry Chinese users: 'This is blatant commercial fraud.'
2. Safety subscription: Hand-burning the trust contract.
In a Tesla loss of control incident in Shenzhen in 2024, the official response hinted: 'The system does not assume relevant proactive avoidance responsibility as the owner did not purchase the FSD full function package.'
This statement triggered a tsunami of public opinion — turning life safety into DLC (downloadable content) is the most profound betrayal of users.
3. Underestimating alternatives: The counterattack of China's 'Avengers.'
Just when Musk joked that 'BYD isn't cool enough,' Lei Jun pressed the nuclear button for the SU7:
• All models come standard with lidar; city NOA activation upon delivery.
• Includes 25 core functions with lifetime free OTA updates.
Consumers respond with action: SU7's pre-sale only took 72 hours, with orders exceeding 310,000, many from former Tesla users. The Chinese market does not ignore loyalty, but it demands respect.
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III. Autopsy report: Comparison of Tesla and KaLide's business genes.
Death gene fragments: KaLide (2013–2018) Tesla (2020–2025)
Profit model: Map updates charge 300 yuan each, seat heating/power steering on a monthly subscription.
Last-ditch rescue announced in 2016 'forever free' and trialing free FSD in 2025.
User feedback: 'If I had known today, why would I have acted in the first place?' 'The money paid before is all gone now?'
Final outcome: Market share drops to 0.2%, completely withdrawing. Q1 sales decline by over 38% year-on-year, user trust collapsed.
Conclusion: When enterprises cut 'the complete service users should enjoy' into paid fragments, they have already signed their own death warrant.
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IV. Declaration of the replacers: The iron law of revenge in China's new commercial ethics.
On the ruins of Tesla, three Chinese brands have taken over and set new rules:
1. Xiaomi: Ending the subscription model with 'all-inclusive thinking.'
'Users should not pay repeatedly for functions they should have.' — Lei Jun's words at the SU7 delivery ceremony are resounding.
• Lidar and Orin chips come standard across all models;
• City NOA free update forever.
Result: The satisfaction rate of the first batch of users reached 97%, with a repurchase recommendation rate exceeding 80%.
2. Huawei: Rebuilding the trust contract with 'responsibility coverage.'
The question and answer M9 announced upon launch:
• Car companies bear 100% responsibility for autonomous driving accidents;
• Invest 2 billion yuan in compensation reserves.
Commercial elevation: liberating consumers from uncertainty is a higher-dimensional competitive strategy.
3. BYD: Crushing the subscription trick with 'technological equality.'
The Seagull electric vehicle priced below 100,000 yuan comes standard with:
• Blade battery lifetime warranty;
• DiPilot highway NOA system.
Market response: In Q1 2025, Seagull sales surpassed competitors in the same price range by a wide margin.
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Final chapter: The steel stamp of consumer civilization on the coffin lid.
When the last Model Y with the 'FSD subscription trial' banner leaves the Shanghai factory, the most ironic metaphor in the history of Chinese automobiles is born — those skilled in calculating paid walls ultimately built their own grave.
Next to KaLide's tombstone, a new grave has already been completed. The inscription will read:
Here lies Tesla.
It teaches Chinese enterprises:
In front of the judgment seat of awakened consumer civilization,
All 'wanting both' tricks will eventually die in the dawn of awakening.
A hundred meters away, the Xiaomi SU7 fleet is roaring past. In the rearview mirror, the last line of inscription on the tombstone is reflected:
'Death is not losing life, but stepping out of the time enslaved by tricks.' (The End)
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Data appendix: Countdown to the death of the trick model.
• Tesla's FSD has not been fully launched in China; in 2025, limited-time free trials will be offered in pilot areas, with low subscription coverage.
• The average lifespan of 'wanting both' enterprises in China: KaLide 5 years, Kaspersky 4 years, Tesla predicted about 6 years.
• The speed of consumer decisions to switch to alternatives: average 67 days in 2020 → only 9.3 hours in 2025.
The underlying logic of business is not 'to let users spend money,' but 'to let users trust you.'
When users collectively say, 'I would rather have a complete 70 points than a flawed 90 points,' an old commercial era quietly comes to an end. $DOGE
