Gone was the conception that Tesla was alone in the electric mobility race. Today, there are many manufacturers vying for a place in the sector. Therefore, it is normal to think that the competition will become even tougher as time goes by. However, Elon Musk, director of Tesla, believes that Chinese electric cars have everything to become benchmarks.
During a call with investors of Tesla for the financial report corresponding to the fourth quarter of 2023, Elon Musk acknowledged that Chinese electric car manufacturers will also be able to find success beyond their borders. And, when that happens, they will make the rest of their rivals tremble.
Now, Elon Musk also points out that much will depend on trade agreements that these companies can achieve in other countries.
“Chinese auto companies are the most competitive in the world. So I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are put in place.”
Of course, the more facilities there are for Chinese electric cars to break into other markets, nothing will stop them from destroying the competition.
“Frankly, I think that if trade barriers are not put in place, they will practically demolish most companies in the world.”
Will they have an easy time with foreign authorities? It does not seem. In September 2023, the European Union launched an investigation into the massive arrival of Chinese electric cars in the region. “Global markets They are flooded with cheaper Chinese electric cars. “Their price is kept artificially low thanks to enormous state subsidies,” said Ursula von der Leyen, president of the European Commission. The bloc is therefore analyzing imposing higher tariffs on these vehicles.
A future dominated by Chinese electric cars?
Despite the possible barrier that Chinese electric cars could soon encounter in Europe, Elon Musk’s words are still interesting. Not only because they expand the panorama of what could happen in the market in the coming years. Also, because they are a kind of warning for traditional automakers, including Tesla itself. If they stop stepping on the accelerator, Chinese manufacturers can destroy them.
There is also a key factor in favor of Chinese electric cars: in many cases, they are cheaper than the European or American proposals.
If we consider that price is one of the barriers that is preventing more people from making the leap to electric cars, this is where Chinese manufacturers can stand to win over millions of consumers, mainly those who opt for a low-end model. or average.
This is not the first time that Elon Musk anticipates that Chinese electric cars will strengthen their presence in the global market. In the middle of the previous year, The tycoon highlighted the competitive spirit of Chinese automobile companies.
“We have a lot of respect for the Chinese auto companies. They are the most competitive in the world. They work harder and smarter. So I have a lot of respect for the Chinese auto companies that we compete against.”
But not only that. He commented that they will grow so much that the second largest market leader, only below Tesla, will be a Chinese company. “If I had to guess, probably some company from China is the most likely to take second place after Tesla.”
We will see, then, what happens in the electric car sector in the near future. Long-established automotive companies will have to redouble their efforts if they do not want the Chinese to snatch their cake…