Technology
Thursday, January 25th, 2024 4:52 pm EDT
Key Points
- Elon Musk praises Chinese electric automakers, stating that they are the most competitive car companies globally and predicting significant success for them outside of China. He emphasizes the potential for these companies to outperform others on a global scale, especially if there are no trade barriers or tariffs.
- The European Commission is currently investigating subsidies provided to electric vehicle (EV) makers in China, raising the possibility of higher tariffs on Chinese EVs. This investigation comes at a time when Chinese automakers, such as BYD, Nio, and Xpeng, are aggressively expanding into Europe, posing a challenge to traditional auto firms.
- Musk acknowledges the success of Chinese EV makers like BYD, which outsold Tesla in battery-powered cars in the fourth quarter. BYD has expanded its sales to markets in Europe, the Middle East, and Southeast Asia. Musk’s positive outlook on Chinese EV manufacturers aligns with his previous statements praising them as the most competitive in the world, suggesting they could be among the top global auto companies. Despite Musk’s optimism, Tesla’s shares experienced a decline in pre-market trade after posting earnings below expectations and warning of a slowdown in 2024.
In Tesla’s recent earnings call, Elon Musk expressed his belief that Chinese electric automakers are the most competitive globally and predicted they would achieve significant success outside of China. Despite facing intense competition from these Chinese companies, Musk acknowledged their potential to outperform other global automakers, particularly if there are no trade barriers or tariffs. The European Commission is currently investigating subsidies provided to Chinese electric vehicle (EV) makers, and there’s a possibility of higher tariffs on Chinese EVs as they aggressively expand into Europe. Musk praised Chinese EV companies like BYD, Nio, and Xpeng, stating that, without trade barriers, they could potentially surpass most other global competitors. Chinese EV makers, such as BYD, have already expanded sales to markets in Europe, the Middle East, and Southeast Asia, posing a challenge to traditional auto firms. Musk’s positive outlook on Chinese EV manufacturers is not new, as he previously referred to them as the most competitive in the world, emphasizing their potential to be among the top global auto companies. Despite Musk’s optimism, Tesla’s own shares experienced a decline in pre-market trade after the company posted earnings that missed expectations and warned of a slowdown in 2024.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/25/elon-musk-says-chinese-ev-makers-will-demolish-other-companies.html
