New Telegraph

How Chinese EV Firms Will ‘Demolish’ Global Rivals – Musk

Elon Musk, the CEO of Tesla and X social media platform, has warned that if trade obstacles were removed, Chinese automakers would “destroy” their international rivals.

Musk’s claim highlights the increasing pressure that Tesla, the market leader in the United States (US) for electric vehicles, is facing from strong rivals like Warren Buffett’s company BYD, which won the title of the best-selling EV in the world last quarter.

With its more affordable models and a wide range of products, BYD was able to surpass the industry leader in electric vehicles, Tesla, even with its extreme price reductions that lasted all through 2023.

Chinese automakers are the “most competitive” in the business, Musk said in a conference call with analysts following their earnings, and they “will have substantial success outside of China, depending on what type of tariffs or trade barriers are established.”

“If there are no trade barriers established, they will pretty much demolish most other car companies in the world,” he said. “They’re extremely good.”

READ ALSO:

The CEO initiated a price war last year aimed at attracting consumers hit with high borrowing costs, leading to a squeeze on Tesla’s margins and raising concerns with investors.

Musk, addressing these challenges on Wednesday, cautioned that Tesla was approaching “the natural limit of cost down” with its current product lineup.

In an effort to address affordability concerns and maintain competitiveness, Tesla has unveiled plans to introduce a more affordable, mass-market compact crossover. Codenamed “Redwood,” this new vehicle is set to enter production in mid-2025, positioning itself as a contender against lower-priced rivals in the market.

Musk on Wednesday confirmed that Tesla expects to start production of its next-generation EV at its Texas factory in the second half of 2025.

Read Previous

Protests Rock Ondo Varsity Over Wage Award

Read Next

Edo 2024: Ex-Gov, Osunbor Obtains APC Guber Ticket Forms