Elon Musk, Tesla’s CEO, Forecasts Chinese Electric Vehicle Companies to Outperform Competitors Without Trade Barriers

On Wednesday, Tesla CEO Elon Musk asserted that Chinese automakers, unhindered by trade barriers, would “outperform” global rivals, highlighting the competitive landscape faced by the leading U.S. electric vehicle market leader, particularly from companies like BYD, aggressively expanding worldwide.

Musk’s remarks followed Warren Buffett-backed BYD’s recent achievement of surpassing Tesla as the world’s leading electric vehicle (EV) company in the last quarter. Despite Tesla’s substantial price cuts through 2023, BYD’s success was attributed to its more affordable models and diverse product lineup.

According to Musk, Chinese car companies stand out as the “most competitive” and are poised for considerable success beyond China, contingent upon the establishment of tariffs or trade barriers. He emphasized that, in the absence of such barriers, Chinese automakers could potentially outperform most other global counterparts due to their exceptional capabilities.

In response to Musk’s comments, the Chinese foreign ministry, during a regular briefing on Thursday, stated unawareness of the reports but advocated for “maintaining a fair, just, and open business environment.”