Elon Musk claims that without trade restrictions, Chinese EV manufacturers will “Demolish” the majority of competition.

 Elon Musk's View on Chinese Electric Auto Makers:

• Elon Musk predicts significant success for Chinese electric auto makers outside of China, despite Tesla's intense competition.
• Musk believes Chinese car companies will outperform other global companies without established trade barriers.
• The European Commission is investigating subsidies given to Chinese electric vehicle makers, but higher tariffs could be considered.
• BYD, Nio, and Xpeng, Chinese startups, have expanded sales to Europe, the Middle East, and Southeast Asia.
• Musk has previously praised Chinese EV makers, calling them "the most competitive in the world."
• Tesla's shares fell in premarket trade after missed earnings and warning of a 2024 slowdown.

Elon Musk, the CEO of Tesla, has warned that Chinese electric vehicle (EV) brands will "demolish" their global opposition unless other nations impose trade barriers to handicap the new wave of electric cars coming from the Far East. 

Musk warned that if no trade barriers are established, they will pretty much demolish most other car companies in the world. This warning comes shortly after BYD slipped by Tesla to become the world's top-selling EV firm in the final quarter of 2023. Tesla aggressively cut prices throughout the year, chasing volume at the expense of profit, and managed to beat Dacia's budget Sandero to the top of the European sales charts. 

China also overtook Japan as the world's biggest exporter of cars during 2023 and seems likely to repeat that success during 2024 as it starts to expand its sales activities into Europe. Musk is not alone among Western car bosses in being concerned about the Chinese threat, but he has a couple of irons in the fire. Tesla will start production of a new baby crossover, Redwood, in 2025, using a new platform that will slash production costs of a Tesla EV, allowing it to bring it to market for less than $30,000.