The Chinese electric vehicle industry is entering a new phase of competition, focusing on large language models built by ByteDance and Alibaba. Over 50 car brands now use Doubao artificial intelligence model, which is used in over 145 car models and over seven million vehicles on Chinese roads. Tesla has already pivoted its China software stack to keep up. However, AlixPartners managing director Stephen Dyer warned that the technology disseminates so quickly that no one can hold a lead for long. The shift in the market has implications for Tesla as China is still Tesla's largest market outside America, generating roughly 30% of the company's global volume in 2025.