Elon Musk names Tesla’s Biggest Rivals: ‘They’re the Hardest and Smartest’ – Business AM

This Wednesday, Tesla announced its results for the last quarter of 2022. They were slightly higher than most analysts expected. Asked about the competition, Elon Musk had only one word in his mouth: China.

Why is this important?

Electric vehicles are set to replace internal combustion engines in Europe and other parts of the world in the next few years. These are the roots of the war in the automotive sector. And where China was not then, it is seizing the opportunity with both hands.

In the news : Elon Musk (again) flatters China.

  • Asked on the occasion of the announcement of Tesla’s results, Elon Musk sent flowers to China.
  • For him, this is where his company’s biggest rival lies.

statements :

  • When asked what he thinks about the competition, the Tesla boss spoke directly about the Chinese automakers, which, in his words, “is the most competitive market in the world”.
  • “They work the hardest and they work the smartest,” said Musk, in remarks reported by Reuters. “And we think it’s probably a Chinese company that’s probably second to Tesla.”
  • In addition, the second richest man in the world took the opportunity to point out that Tesla’s courage turned out to be greater.
    • “Our team won in China. And think that we are really attracting the best talents in China. So we hope that will continue,” he said.
  • Note, however, that Musk did not mention the name of a Chinese car company.
  • This is not the first time Musk has shared his admiration for Chinese companies and their employees. It is noteworthy that he threw them flowers when the factories continued to operate despite the confinements caused by the pandemic.

Can Chinese companies dethrone Tesla?

The current biggest rival : BYD (Build Your Dreams).

  • In terms of global sales, Tesla remains the number one electric car in 2022.
    • The American company has sold just over 1.3 million EVs.
    • Not far behind, we find the Chinese BYD, which sold 911,000 units.
  • In the past few months, BYD has been busy selling its cars in several European countries (including Belgium), after starting by attacking Norway, a country where EVs are king.
    • Currently, the majority of vehicles sold by BYD are in China.
    • But three models are currently offered in Europe, the cheapest of which, the Atto 3, is sold from 46,740 euros here.
    • However, the development of the Chinese brand in the Old Continent may conflict with the fact that some European countries (including France) are considering reserving an ecological bonus for locally assembled vehicles, underlined Fandroid.
    • This is also the reason that will prevent BYD from entering the United States this year. With the $7,500 bonus for EVs now reserved for vehicles assembled in the country, the Chinese company has changed its tune, knowing it won’t be able to compete with Tesla.
    • However, BYD did not bury the American track. It will consider building a factory there to meet the conditions of the American bonus.

But BYD is not alone.

  • Tesla’s other Chinese competitors include Li Auto, Xpeng and Nio, among others.
  • These three companies, even younger, are still far from BYD’s (and Tesla’s) figures.
    • By 2022, Li Auto has sold around 133,000 electric vehicles. Nio sold 122,000 and Xpeng a few thousand less.
  • However, the three young shoots are in clear development.
    • Within two years, Nio tripled its sales. For their part, Li Auto and Xpeng have more than four times theirs.
  • Like BYD, Li Auto, Nio and Xpeng are entering the European market. For the USA, this will not happen for several years, in principle.

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