Musk says Chinese EVs will ‘demolish’ competitors without trade barriers

Tesla CEO Elon Musk said Wednesday that Chinese electric vehicle companies will “demolish” their competitors elsewhere in the world without trade barriers.

“Our observation is generally that 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 fourth-quarter earnings call.

“Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world,” he added. “They’re extremely good.”

Musk’s comments come after Chinese automaker BYD dethroned Tesla as the world’s largest EV maker in the fourth quarter of 2023, although Tesla’s yearly global EV sales still outpaced those of BYD, according to CNN.

Tesla’s fourth-quarter earnings also came in below expectations, The Associated Press reported. While the company more than doubled its net income last quarter, most of the bump came from a one-time tax benefit.

The EV maker reported about $7.9 billion in net income in the fourth quarter of 2023, up from about $3.7 billion in the final quarter of 2022. However, the one-time noncash tax benefit amounted to $5.9 billion.

Tesla also reportedly warned shareholders in a letter Wednesday that the company’s growth rate may be “notably lower” in 2024, according to the AP.