This was reported by Reuters, Ukrinform reported.

Chinese auto companies were the most competitive last year, according to the American billionaire, and the extent of their success outside China will depend on tariffs or trade barriers imposed on their cars.

“If trade barriers are not created, they could destroy most of the other car companies in the world. They are extremely good,” Musk said.

BYD, the Chinese automobile giant and one of the world’s largest electric car manufacturers, surpassed Tesla in the number of electric cars sold in the last quarter, despite the American company’s sharp decline in car prices in 2023.

As Reuters points out, Tesla’s CEO has reason to worry, because last year the company, in order to attract buyers’ interest, reduced the cost of electric cars on its own initiative at the expense of reduced profits, which caused concern among investors. However, the desired result was not achieved.

Musk has warned that Tesla is approaching its cost-cutting limit with its current lineup of electric cars, so in mid-2025 it plans to start production of a cheaper compact crossover for the Redwood mass market in a bid to compete with low-cost electric car makers. .

The American billionaire also said there was no obvious opportunity to collaborate with Chinese rivals, but Tesla was willing to give them access to its charger network and license some technologies such as autonomous driving.

Europe is also trying to protect European automakers from the impact of cheaper electric car imports from China. In October last year, the European Commission launched an investigation into alleged violations of market rules and the receipt of state subsidies by which Chinese companies could set lower prices for their cars.

According to Ukrinform’s report, Turkish automobile manufacturer Togg introduced the new model of its electric car with a “sedan” body for the first time at an exhibition in Las Vegas.

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