Tesla CEO, Elon Musk has confessed that there is an automaker in China that is likely to be Tesla’s closest rival, admitting that the company is making it really big in China now.
Electric car manufacturing is really booming in China as there are a lot of companies that are doing great jobs. The likes of Nio, Xpeng and Li Auto are all top EV manufacturers in China. These companies are really making some great EVs that compete with Tesla EVs in all aspects.
However, all these names are not giving Tesla a tougher competition as the Warren Buffett-backed company, BYD. In 2022 alone BYD sold a total of 911,140 battery electric vehicles worldwide. This number doubles when we factor-in the total vehicles sold. Together with plug in hybrid vehicles, BYD sold an astonishing 1.8 million vehicles in total. Meanwhile, Tesla also sold a total of 1.31 million vehicles globally in 2022.
Elon Musk Makes Promising Statements at the Tesla Earning Call
On Tesla’s earning call on Wednesday, Elon Musk answered a question about the competitive landscape for electric cars. Musk answered by saying, “we are fired up about the future and, well, it’s going to be great.”
“We have a lot of respect for the car companies in China. They are the most competitive in the world. They work the hardest and they work the smartest. So lots of respect for the China car companies that we’re competing against,” Musk said.
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He went further to state that, “And so, if I were to guess … probably some company out of China is the most likely to be second to Tesla. Despite the fact that Tesla China team is winning.”
According to data from China Passenger Car Association, The Tesla Model 3 was the fifth best selling New energy car in China for 2022. Cars from BYD and SAIC-GM-Wuling sold more than the Tesla Model 3 did.
In the Sports Utility Vehicle (SUV) segment, the Model Y came second in the best selling electric SUV in China. Coming first is no other brand but a vehicle by BYD.
Tesla Faced More Challenges in China Last Year
Tesla faced a number of challenges in China last year. This includes the COVID-19 disruptions at the Shanghai factory because of strick Covid policies and of course, shortage of components.
In spite of all this, Tesla was still forced to cut down the prices of its vehicles due to low sales. Apart from the Chinese automakers that are putting the American EV brand on its toes, other Brands from US and Europe are also bringing in more competition.
Source / Via: CNBC