Tesla’s CEO, Elon Musk, recently stated in a conference call with analysts following the release of the company’s quarterly results that Chinese electric car manufacturers are likely to become Tesla’s biggest competition. Musk acknowledged the hard work and smart strategies of Chinese automakers, referring to them as “the most competitive company in the world.”
In October 2021, Tesla announced a price reduction for its electric vehicles in China, including its Model Y and Model 3 models produced in the country. Other electric vehicle manufacturers, such as Xiaopeng Inc. and Aito, have also announced price cuts in order to compete in China’s burgeoning electric vehicle market, the world’s largest.
Musk has previously expressed his respect for Chinese automakers, stating in a September 2021 online conference, “I have great respect for many Chinese automakers.” China is currently Tesla’s largest market, with over 710,000 electric vehicles produced in the country last year, accounting for 52% of the company’s global production. Despite disruptions caused by the cancelled zero Covid policy, Tesla continues to operate a factory in Shanghai, which is the largest car factory in the world for Tesla.