Musk demands trade barriers against his Chinese competitors (3 photos)

Tesla CEO Elon Musk said Chinese automakers can become global leaders in the auto industry without trade barriers.





He noted that Warren Buffett-backed BYD surpassed Tesla in global electric vehicle sales in the latest quarter thanks to more affordable models and the diversity of its product line. Musk also noted that Chinese car companies could succeed outside of China if trade barriers were not put in place, and warned of the possible destruction of other car companies in the world.



"If trade barriers are not put in place, they will pretty much wipe out most other car companies in the world." (c) Musk

In response to Musk's comments, China's Foreign Ministry said it had no knowledge of such statements but supported maintaining a fair and open business environment.

Elon Musk may be concerned about competition given last year's price war, which he launched to attract customers hit by high borrowing costs. On Wednesday, Musk warned that Tesla is reaching a "natural limit to cost reduction" with its existing lineup.

And the unrest in Texas could harm Musk’s plans, because production of the next generation of electric vehicles should begin there in the second half of 2025.

But the Chinese do not have such problems. Chinese electric vehicle manufacturers, able to manage costs effectively, are moving quickly and aggressively expanding their presence abroad, and they also have strong government support at home in China.

Although analysts are skeptical. Spencer Imel, a partner at the consumer insights analytics company Lansgton, is confident that the low quality and weak recognition of Chinese brands will not allow the Chinese to capture a share of the global market for a long time.



You can even change the batteries in this electric car.

Musk himself said Wednesday that there is "no obvious opportunity" to partner with Chinese rivals, but Tesla is open to giving them access to its charging network and licensing other technologies such as autonomous driving.