I'm sure someone can give a more nuanced answer than myself.
What you are talking about is branding. Like how there is concern Tesla's brand is diluted because NIO or Xpeng or Li are now competitors. Tesla's brand only holds true in the face of those competitors as long as the engineering and finish continue to be high quality, the advances like autopilot and battery life continue to improve, and the product is appealing enough that a big cross section of the population either buys it or would like to buy it. Tesla's price doesn't have to decrease because of the competitors; although there will definitely be people who prefer Chinese knockoffs to the original thing, it doesn't mean Tesla's still don't have a place on the market. Another approach is that Tesla could pay off some Senators and make the argument that people deserve the highest quality product and that the introduction of lesser products would increase traffic fatalities by 100%, thus adding billions of dollars of liability into the system. Maybe one of those arguments about liability is the Chinese autopilot feature is a total buggy ripoff of the original. Another approach is they could sue the other companies directly of patent infringment, thus blocking their introduction into the US market. If I'm Tesla, all these avenues are worth pursuing, but the basis of each avenue still relies on the idea that Tesla is and remains the highest quality product.