Elon Musk did not mince his words with Tesla investors. He clearly told them that Chinese automakers would demolish Western brands if “ trade barriers » were not established.
Elon Musk warns the industry
For the boss of Tesla, a Chinese brand like BYD is today the most competitive in the world. Elon Musk alerted his company’s investors to the subject. He is convinced that Chinese manufacturers are capable of doing a lot of harm to historic brands if nothing is done. Tesla has already revolutionized the automobile industry in recent years, but the Chinese could do even better.
The Tesla Model Y broke all records in 2023. The American SUV was the best-selling vehicle last year. And this, all engines combined. A feat of which Elon Musk is very proud. However, the Tesla boss takes the threat from China very seriously. BYD dethroned Tesla by stealing its place as the leading manufacturer in the electric segment in the last quarter of 2023.
BYD calls on Chinese manufacturers to unite to “demolish” historic brands
According to Reutersthe billionaire explained to Tesla investors that Chinese automakers were able to “ demolish » industry. Unless countries impose trade barriers to handicap the new wave of electric cars from the Middle Kingdom. “ They are extremely good “, he added about Chinese industry.
Tesla has lost its leadership position
A few years ago, however, he would never have bet on China to dominate the automobile world. Like most analysts and owners of historic brands. So this is a very clear warning. The drop in prices of Western models will not be enough to cope with the massive arrival of Chinese electric cars. Which are increasingly qualitative and sophisticated.
China overtook Japan as the world’s leading exporter of cars in 2023. It is difficult to see what could prevent Xi Jinping’s country from repeating this success in 2024. Elon Musk is not the only one to worry about the rise of Chinese brands. The European Commission is currently investigating the offices of BYD, Geely and SAIC.
European Union to investigate subsidies for Chinese electric vehicles
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