What Tesla is producing is less in China, others make up for in...

What Tesla is producing is less in China, others make up for in production. There are massive production capacites for EVs in China. There also massive production capacities from battery cells already. Most companies have to lower prices to increase demand even more so that inventories don't get too big and the factories are not underutilized. Some need to cut prices more than others
It really depends on how competitive the products are, how much demand there is for the model specific market segment and how many the company needs to sell more to guarantee a good production capacity utilization for its factories. Obviously, there are companies that will reach zero or negative profit margins and some of them will go bankrupt. There are simply too many EV brands in China even thought it is by far the biggest EV market, over 100 Chinese EV brands.

Check this out. In this database there are over 300 already released pure battery electric models from Chinese brands. Some of them are not sold anymore. But I would estimate there are currently over 300 Chinese models on the market + maybe 100 foreign models, so maybe around 400 battery electric vehicles on sale in total. So their is plenty of choice. To me it seems that many analysts do not cover the whole spectrum of the Chinese EV market and are not aware how fast many companies / brands from the second or third row are moving.

https://db.carnewschina.com/all-brands?price_usd_min=0&price_usd_max=240000&nev-fuel-type=BEV&number-of-lidars_min=0&number-of-lidars_max=5&battery-capacity_min=0&battery-capacity_max=150&combined-peak-power-kw_min=0&combined-peak-power-kw_max=1000