In 2025, nearly 90% of humanoid robots sold globally were from China, with companies like Unitree and Agibot leading the market. While Tesla and other American firms lag behind, analysts note that China's advantage stems from strong state support and a robust supply chain. The humanoid robotics market is projected to grow significantly, reaching $38 billion by 2035.

Tesla is facing increased competition in China, leading to a price war as it prepares to launch the more affordable Model 3 Plus alongside the Model Y. This move is seen as a strategic response to rival manufacturers slashing prices to attract consumers in the growing electric vehicle market.