Tesla boss Musk assumes that the biggest rival will come from China

Tesla’s biggest competitor will probably come from China, expects CEO Elon Musk. According to the Tesla boss, the Chinese car companies work “the hardest and smartest” and are the most competitive in the world.

“If I had to guess, I think a company from China will probably be number two after Tesla,” Musk commented on the American electric car maker’s results. According to the CEO, China is also the most competitive market.

Biggest Tesla rival comes from China

Back in September 2021, Musk said he had “great respect for the many Chinese automakers.” The leading electric car maker in China is currently BYD, which Tesla will surpass by 2022 when BYD’s hybrid vehicles are included.

710,000 vehicles

Tesla itself manufactured more than 710,000 vehicles in China last year. That’s more than half of the company’s global production. However, production in the large factory in Shanghai was disrupted last year by the strict corona policy in China that has since been published.

According to Musk, 2022 was therefore a difficult year due to production disruptions at the Shanghai plant, higher financing costs and logistical problems. Barring unexpected disruptions, Tesla’s global production could reach 2 million vehicles this year, Musk said.

discount

Tesla again cut the prices of its models in China earlier this month, following cuts back in October. Other automakers have also announced price cuts to gain a foothold in the world’s largest electric vehicle market, including local players like Xpeng and Aito, which is backed by Huawei.

Tesla announced on Wednesday that it had posted record profits last year despite economic headwinds and production disruptions. Other major international car manufacturers are also increasingly turning to electric vehicles to replace their petrol and diesel models. The South Korean Hyundai announced on Thursday that it would invest almost 8 billion euros in the electrification of its models this year.