- Elon Musk said Chinese electric car makers will find "significant" success outside of China, even as his auto firm, Tesla, faces intense competition from these same companies.
- "Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world," Musk said.
- Automakers including BYD, Nio and Xpeng have expanded sales outside of China in the last two years, looking to take on established brands.
Elon Musk said Chinese electric auto makers will find "significant" success outside of China, even as his firm, Tesla, faces intense competition from these same companies.
"The Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established," Musk said on Tesla's earnings call Wednesday.
"Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world."
The Hurricane season is on. Our meteorologists are ready. Sign up for the NBC 6 Weather newsletter to get the latest forecast in your inbox.
The European Commission, the executive arm of the European Union, is currently investigating subsidies given to electric vehicle makers in China. That probe began last year and has yet to be concluded. But there is a chance the EU could consider higher tariffs on Chinese EVs, at a time when they are expanding aggressively into Europe.
BYD, which sold more battery-powered cars than Tesla in the fourth quarter, has expanded sales to markets in Europe, the Middle East and Southeast Asia. Chinese startups including Nio and Xpeng, have also launched their cars in Europe.
Chinese EV makers showed off their wares at one of Europe's biggest auto shows last year. At the time, analysts said these companies could pose a challenge to traditional auto firms.
Money Report
It's not the first time Musk, CEO of Tesla, has heaped praise on Chinese EV makers. Last year, the billionaire called Chinese EV firms "the most competitive in the world" and said they are likely to be among the world's top auto companies.
"If I were to guess ... probably some company out of China is the most likely to be second to Tesla," Musk said.
Tesla's own shares slid in premarket trade Thursday, after the company posted earnings that missed expectations and warned of a slowdown in 2024.
