Elon Musk, the CEO of Tesla, emphasized on January 24th that “Chinese automakers will ‘demolish’ global rivals without trade barriers,” highlighting the fierce competition confronting the leading US electric vehicle company from firms like BYD, which are aggressively expanding worldwide, according to a report by Reuters.
Musk’s remarks came in response to the recent success of BYD, backed by Warren Buffett, whose more affordable models and diverse lineup propelled it past Tesla as the world’s top-selling EV (Electric Vehicle) company in the last quarter, despite Tesla’s significant price reductions throughout 2023, as reported.
Photo by: Jae C. Hong/AP. File photo, Tesla CEO Elon Musk speaks before unveiling the Model Y at the company’s design studio in Hawthorne, Calif. (AP Photo/Jae C. Hong, file
“The Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established,” Musk stated during Tesla’s earnings call on Wednesday.
Musk confirmed Tesla’s plans to introduce a more affordable mass-market compact crossover, codenamed “Redwood,” in mid-2025 to compete with cheaper rivals.
However, with Chinese EV manufacturers skilled at cost management and rapidly expanding their foreign presence, Tesla faces heightened competition.
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