Will Chinese producers destroy the competition? Musk has no doubt

In the last quarter of 2023, Tesla was finally able to exceed analysts' expectations. The American company delivered a total of 484,507 new cars to customers, which turned out to be a better result than experts expected. Unfortunately, despite the obvious recovery, increased sales did not allow Elon Musk's company to become a leader in the electric car market. This cup went to the Chinese, specifically to BYD, which is based in Shenzhen.

The eccentric billionaire did not have to wait long to comment on this matter. As reported by Reuters – during a recent press conference Elon Musk I decided to warn the world about Chinese car companies and their aggressive expansion. In his opinion, the absence of any trade barriers imposed on Chinese producers will lead to the complete destruction of their global competition. Meanwhile, Musk admitted that the people responsible for setting sales strategies at Chinese companies are doing an “exceptionally good job.”

The main factor that attracts customers to Chinese cars is their affordable price. Electric cars from the Celestial Empire are simply much cheaper than their American and European competitors. If that's not enough, Chinese manufacturers have already announced the launch of other cheaper models.

Reuters journalists also point out that the opinion expressed by Elon Musk coincided with the ongoing presidential campaign in the United States. Some time ago, President Joe Biden said that China was determined to dominate the world's electric vehicle market and would do everything in its power to prevent this from happening. Republican candidate Donald Trump has also indicated that if he wins the election, he will raise tariffs on all imports into the United States.

European Union authorities have also been discussing Chinese expansion for a long time. At the end of last year, the European Commission announced the launch of an investigation to determine whether the subsidies and benefits provided by the Chinese government were directly linked to an attempt to harm European electric car manufacturers. If the investigation confirms these allegations, the Commission will be able to apply measures such as anti-dumping duties to equalize competition in the European market.