Elon Musk Super Bullish on Chinese Electric Car Companies

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Tesla’s current convention name for traders was packed stuffed with little nuggets, and a few huge nuggets. We coated the Tesla California factory being the biggest auto production facility in the USA, we coated the financials, we coated the $25,000 Tesla coming in 2025, we coated the stock tumbling, we coated Tesla services becoming very profitable, and we coated Tesla energy storage & solar profits nearly quadrupling. However there was a reasonably large assertion close to the tip of the convention name that we didn’t cowl, and that involved Elon Musk’s very bullish views on Chinese language EV corporations.

Right here’s what Elon needed to say: “Our statement is, typically, that the Chinese language automobile corporations are probably the most aggressive automobile corporations on the earth. So, I believe they are going to have vital success outdoors of China, relying on what sort of tariffs or commerce boundaries are established. Frankly, I believe that if there usually are not commerce boundaries established, they are going to just about demolish most different automobile corporations on the earth. So, they’re extraordinarily good.”

Naturally, Musk didn’t identify any specific manufacturers, however probably the most profitable and most notable manufacturers embody BYD, NIO, and XPeng. (Li Auto deserves a nod right here, given its recognition, however be aware that it solely sells plug-in hybrid fashions — so it’s unlikely it is a model Elon was interested by.) There are additionally some cheaper electrical fashions from GAC, Wuling, SAIC/MG, Changan, and different — however, once more, I’ve to presume Elon was considering extra about manufacturers competing with Tesla than manufacturers down market. In any case, although, no matter worth level you’re looking at, Chinese language EV manufacturers are most likely the most effective — or a number of the greatest — choices available on the market. Nicely, that’s, if you’re in a market that sells them. Europe is getting increasingly of those choices, whereas the US remains to be principally barren on the subject of Chinese language EV choices. Many different markets — like Chile, for instance — are someplace in between.

It’s each shocking and unsurprising that several finalists for our 2023 European CleanTechnica Car of the Year award had been Chinese language EVs. It’s shocking as a result of the European auto market is so huge, so extremely regarded, and so laborious to interrupt into. It’s unsurprising as a result of Chinese language corporations are producing the most effective electrical automobiles and the most effective electrical automobiles for the cash, even accounting for delivery prices and tariffs. As extra of these hit international markets like these preliminary ones in Europe, our ears perk up. In fact, as indicated not too long ago and within the picture on the high, the winner of the 2023 European CleanTechnica Car of the Year award was the MG4, a Chinese language mannequin utilizing an auto model that was initially British.

Will Chinese language electrical automobile manufacturers demolish different automobile corporations within the US and Europe? Will they be blocked from disruption in these markets by way of ongoing and rising commerce boundaries, both not being allowed in these markets or by way of excessive tariffs? Will they battle to interrupt into markets as a consequence of lack of name consciousness? Tell us your ideas down within the feedback?