Musk says China rivals ‘work hardest, smartest’

Tesla Inc (TSLA.O) is expecting tough competition in China, the company’s second largest market. China is known for its electric vehicle (EV) sales, which accounted for two-thirds of global sales in 2022.

The country is also home to Tesla’s biggest plant, and many of its rivals such as Xpeng (9868.HK), Nio, and BYD Co Ltd (002594.SZ). According to Tesla’s financial results released on Wednesday, price cuts have been stimulating demand and the company is cutting costs to prepare for what Elon Musk expects to be a recession this year.

When asked about competition, Musk responded that he respects Chinese car companies, calling China the most competitive market in the world. He did not mention any car companies by name.

“They work the hardest and they work the smartest,” he said. “And so we guess, there is probably some company out of China as the most likely to be second to Tesla.”

Tesla recently promoted China chief Tom Zhu to run U.S. factories and sales in North America and Europe, Reuters has reported.

“Our team is winning in China. And think we actually are able to attract the best talent in China. So hopefully that continues.”

- Advertisement -

Tesla has cut prices in response to growing competition and slowing demand in China, followed by cuts in the United States and other markets.

Musk has praised Chinese workers and competitors before.

In 2021, he called Chinese automakers the “most competitive in the world,” saying some of them are very good at software. He also said Chinese workers had been “burning the 3 a.m. oil” to keep Tesla’s factories running during COVID lockdowns last year.

This content should not be accepted as official medical, legal or professional advice.