According to Elon Musk, a Chinese car manufacturer is most likely to rival Tesla’s position as the leader in electric vehicles (EVs). During a quarterly earnings call, Musk was asked about Tesla’s competition in China and he responded by praising the hard work and smart strategies of Chinese carmakers.
Many global car manufacturers have set their sights on challenging Tesla’s dominance in the EV market, however it seems that a Chinese company may have the upper hand in achieving this goal.
Elon Musk noted that Chinese carmakers âwork the hardest, and they work the smartest.â
âIf I were to guess, probably some company out of China is the most likely to be second to Tesla.â
In the electric vehicle market, Chinese company BYD is quickly becoming a formidable competitor for Tesla. Despite being backed by Warren Buffett, BYD’s impressive sales growth – a staggering 184% increase in 2022 – has flown under the radar for many, with the company selling 911,410 battery-electric vehicles last year, coming in second only to Tesla’s record-breaking 1,313,851 EV sales. Furthermore, when considering plug-in hybrids, BYD ended the year with 1,868,543 vehicles sold.
While Tesla CEO Elon Musk remains confident in the company’s position as the world’s leading EV producer, industry analysts predict that BYD could overtake Tesla in EV sales as soon as this year. This is due in part to BYD’s ability to sell a majority of its vehicles at a more accessible price point between 100,000 Yuan ($14,490) and 200,000 Yuan ($29,000) in China, in comparison to Tesla’s higher price point.
If Tesla wishes to maintain its top spot in the market, the company may want to expedite the launch of its promised $25,000 EV to better compete with BYD and other rivals in the space.
