Elon Musk recognizes China’s leadership in electric vehicles
Elon Musk considers Chinese electric car manufacturers “extremely good” and thinks they “will have significant success outside of China.”
According to AUTO-Consulting, Tesla CEO Elon Musk said that Chinese automakers would “demolish” most other car companies in the world if there were no trade barriers.
“In our observation, Chinese automakers are the most competitive automotive companies in the world,” the tech billionaire said during Tesla’s conference call when asked if he sees opportunities for partnerships with Chinese manufacturers.
“I think they’re going to have a lot of success outside of China,” Musk said, adding that without trade barriers, Chinese automakers would “virtually destroy” their foreign competitors.
“They’re extremely good,” Musk said, but Tesla sees “no obvious opportunity for partnership” other than sharing its network of Tesla Supercharger stations.
The American electric vehicle giant is facing increased competition from Chinese automakers, primarily BYD, both in China and abroad.
Between October and December, BYD sold a record 944,779 new battery-powered vehicles, including 526,409 pure electric vehicles, overtaking Tesla as the largest electric vehicle manufacturer for the first time.
Meanwhile, Tesla drivers in China are facing restrictions on entry to more government-related facilities due to data security concerns amid political tensions between Washington and Beijing, which is causing difficulties for Musk’s company in the world’s largest electric vehicle market.
Amid increased competition and political uncertainty, Tesla cut prices in China again this month, following several dumping campaigns over the past year. It also reduced prices for several models in Europe.
Despite its rivalry with BYD, Tesla still sees the Chinese company as an important battery supplier. “We really value our suppliers. You know Panasonic is obviously our oldest supplier. It’s an amazing company. We have CATL, we have LG,” Musk said and after a long pause added: “AND BYD.”
In 2024, Tesla plans to increase orders from the aforementioned battery suppliers, the CEO said during the call.
