Musk’s comments come after Warren Buffett-backed BYD - with its cheaper models and a more varied lineup -overtook Tesla as the world’s top-selling EV company last quarter, despite the U.S. automaker’s deep price cuts through 2023.
“If there are no trade barriers established, they will pretty much demolish most other car companies in the world,” he said. “They’re extremely good.”
Does this mean you cannot compete Elon?
Tesla plans to start producing a cheaper, mass market compact crossover codenamed “Redwood” mid-2025 to compete with inexpensive rivals, Reuters reported on Tuesday. Musk on Wednesday confirmed that Tesla expects to start production of its next-generation EV at its Texas factory in the second half of 2025.
Too little too late?
10 new models! And with new technology such as fully-automated parking and autonomous lane changing.
Musk burst out laughing during a 2011 interview when the reporter suggested BYD as a potential rival for Tesla in the EV space.
From 2011 to now BYD focused on creating their own efficient vertical integration by owning battery and chip production for their vehicles and sale to other manufacturers of surplus manufactures items. Thus a sale of a competitor’s EV sends some cash into BYD’s pocket.
Did Elon not know or forgot the concept of face in China?
Did the laughter spur BYD to push to become much more competitive?
Now the article’s title is too strong. The BYD executive does not taunt but did indicate that BYD is coming for Tesla. Look out Elon. The competitive juices are flowing within BYD management.
The EV manufacturing business is no longer a high profit margin business but a low margin endeavor similar to a grocery store.
“Electric vehicles in China becomes a consumer electronics [product]. It’s similar to the cellphone industry,” said Li Yi, chairman and CEO of Appotronics, a Shenzhen-based laser display company that claims to work with major automakers.
No longer are companies competing primarily on driving range. Instead, as they reveal new models at a rapid pace, they’re piling on a slew of features: in-car projectors, refrigerators and driver-assist, to name a few.
Tesla’s cars don’t come with those accessories, and Elon Musk’s automaker only offers a limited version of its driver-assist tech in China right now.
More than 100 new EV models are due to launch in 2024 in China, according to HSBC.
The above raises other questions.
Does tariff protection of US EV manufacturers slow the adoption of EVs in the nation and slow the fight against global warming?
Is China’s superiority in EV manufacturing temporay or permanent?