Tesla CEO Elon Musk praised the speed and efficiency of the Chinese automotive industry in creating technology and that it has the potential to undermine the performance of competitors in Europe.
Tesla has seen its stock drop after its quarterly earnings report showed a slowdown. It is included once with the performance of the Cybertruck release which was less well received.
Based on Elon's statement, he claims that China's auto industry will destroy other EV car makers if global trade does not act accordingly.
China's EV industry has seen rapid growth due to its huge demand there. The industry has positioned itself well at the top of the market and continues to grow globally rather than in Europe.
Chinese automakers are leveraging some key fundamentals to make EVs more viable and durable. It also gives a high consultation advantage to customers.
During Tesla's quarterly Financial announcement, Elon Musk acknowledged the rapid progress and efficiency of China's electric vehicle (EV) industry.
However, he did raise concerns that without trade barriers, China's EV industry could outpace and possibly overtake other automakers.
The billionaire suggested that Chinese EV companies could achieve significant success outside of China depending on the trade tariffs imposed.
The entry of Chinese EVs into the global market has raised concerns about the domestic market. This has prompted several international parties to implement regulations to prevent the influx of cheap Chinese products.
Tesla is the first foreign automaker to successfully build its operations in China without having to form a local brand partner.
The luxury EV car has also been sued with BYD, the Chinese automotive company.
Tesla's earnings report for the fourth quarter of 2023 showed a failure to meet market expectations.
