Tesla CEO Elon Musk said on Wednesday that Chinese automakers will overtake other automakers in the near future if trade barriers are not imposed. His company is involved in fierce competition with Chinese companies.
For example, it was recently found that Chinese company BYD sold more electric cars than Tesla in the fourth quarter of last year. This is partly because the Chinese also focus on the lower segments of the market. Tesla does not currently offer any cars in this price range.
According to Musk, Chinese automakers are highly competitive and will succeed outside China depending on the tariffs or barriers put in place. “Without these barriers, it would more or less destroy most of the other car companies in the world.”
Tesla was forced to offer significant discounts in China last year due to fierce competition. Which led to pressure on the company’s profit margin. However, the bottom line still amounts to $4.4 billion (€4 billion) remaining in the fourth quarter. The trading value reached more than $25 billion, an increase of about 3 percent over the previous year.
Production rose significantly last year: Tesla produced a total of 1.8 million vehicles, up 38 percent from the previous year. Musk believes this growth is unlikely to continue this year. This is because the company will be working on a new generation of models. He did not say exactly how much smaller growth he thinks it will become.
News agency Reuters It was reported on Wednesday that Tesla may begin production of a new model next year. It will be a crossover codenamed Redwood.
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