Without trade barriers, Chinese automakers will 'demolish' rivals, says Elon Musk

If trade barriers did not exist, Elon Musk, the CEO of Tesla, claimed that Chinese automakers would "demolish" the majority of other car companies worldwide. 

In response to a question about potential collaborations with Chinese automakers, the tech billionaire stated that their observation was generally that the Chinese car companies were the most competitive car companies in the world.

Chinese manufacturers, chiefly BYD, are posing a growing threat to the dominant U.S. electric vehicle company, both domestically and internationally. 

BYD surpassed Tesla as the largest EV manufacturer for the first time with record sales of 944,779 new energy vehicles between October and December, including 526,409 pure electric vehicles.

A larger cloud is being cast over the future of the EV giant in the largest EV market in the world as Tesla drivers in China are encountering entry restrictions at more government-affiliated venues as a result of data security concerns amidst ongoing tensions between Washington and Beijing.

Following multiple price reductions over the previous year, Tesla reduced pricing in China this month due to increased competition and an ambiguous policy. In Europe, it also drastically reduced the cost of a few models.

Tesla's profitability was further pressured by the price reductions. On Wednesday, the business revealed a decline in quarterly profits for the second time in a row. 

Even with their rivalry, Tesla regards BYD as a significant supplier of batteries.

According to the CEO during the earnings call, Tesla intends to increase orders from the aforementioned suppliers in 2024.