Elon Musk believes Chinese electric cars could destroy competitors

Gone is the notion that Tesla was alone in the electric car race. Today, many manufacturers are competing for a place in this sector. Therefore, it is natural to think that over time the competition will become even tougher. However, Elon Musk, director of Tesla, believes that Chinese electric vehicles have everything to become the standard.

During a call with Tesla investors regarding its fourth-quarter 2023 financial report, Elon Musk admitted that Chinese electric vehicle makers will also be able to succeed beyond their borders.. And when this happens, they will make the rest of their rivals tremble.

Elon Musk also notes that much will depend on trade agreements what these companies can achieve in other countries.

“Chinese car companies are the most competitive in the world. So I think they will have significant success outside of China, depending on what tariffs or trade barriers are put in place.”

Of course, the more opportunities Chinese electric vehicles have to penetrate other markets, nothing will stop them from destroying the competition.

“Frankly, I think if trade barriers are not put in place, they will practically destroy most companies in the world.”

Will it be easy for them with foreign authorities? It does not seem. In September 2023, the European Union launched an investigation into the massive arrival of Chinese electric vehicles in the region. “Global Markets They were flooded with cheaper Chinese electric cars. “Their price is kept artificially low by huge government subsidies,” said Ursula von der Leyen, president of the European Commission. Therefore, the unit is analyzing the introduction of higher tariffs on these cars.

A future dominated by Chinese electric vehicles?

Despite the possible barrier that Chinese electric cars may soon face in Europe, Elon Musk’s words are still interesting. Not only because they expand the panorama of what may happen in the market in the coming years. Moreover, since they are a kind warning for traditional automakers, including Tesla itself. If they stop stepping on the gas pedal, Chinese manufacturers could destroy them.

There is also a key factor in favor of Chinese electric vehicles: in many cases they are cheaper than European or American proposals.

If we consider that price is one of the barriers that prevents more people from switching to electric vehicles, this is where Chinese manufacturers can win over millions of consumers, mainly those who choose budget or mid-range models. .

This is not the first time Elon Musk expects Chinese electric cars to strengthen their presence in the global market. In the middle of last year, The tycoon emphasized the competitive spirit of Chinese automobile companies.

“We have a lot of respect for Chinese car companies. They are the most competitive in the world. They work harder and smarter. So I have a lot of respect for the Chinese car companies we compete with.”

But not only that. He noted that they will grow so much that the second largest market leader, after Tesla, will be a Chinese company. “If I had to guess, probably one company from China would be most likely to take second place behind Tesla.”

Let’s see what happens in the electric vehicle sector in the near future. Long-established car companies will have to redouble their efforts if they don’t want the Chinese to steal their pie…