The expansion of the Chinese automobile industry in the world is unstoppable. Competitiveness in technology and prices are its two strengths that are marking the preference of electric vehicle buyers.
Manufacturers who were quietly enjoying their success in the markets are concerned and they show their concern about this advance that does not recognize borders. This reality was seen coming and does not surprise observers of the motor world. But the speed of incorporation into the markets and the great acceptance they have had among those interested in new cars have an impact.
Tesla, the leader in the sale of electric cars, is no stranger to this concern and has been one of the most affected. In the last quarter of 2023 it has been surpassed by BYD. Incredible but real. Elon Musk, the CEO and head of Tesla, affirms that only trade barriers, especially tariffs, will be able to restore balance and safeguard the European industry.
And he is not the only one who recognizes this Chinese supremacy that threatens the European future. In insideevs.com, a reference in news, it is said that Carlos Tavaresá, CEO of Stellantis, is on the same line as Musk. The businessman affirms that there is no way to confront this Chinese advance.
Observing reality leads to recognition that the global automobile industry faces a complex challenge to maintain itself in the face of Chinese manufacturing. Until now, Neither Tesla nor the other traditional brands have found a way to catch up with the prices of Chinese vehicleswhich are lower than the cost of manufacturing them in the rest of the world.
And although economical models are announced, they are not yet on sale or even in sight. While the Chinese increasingly populate the automotive fleet in much of the world.
Tesla’s latest quarterly earnings report tempers the industry
In its quarterly report, Tesla reveals its financial situation. In the last quarter of 2023, BYD, the renowned Chinese company, accumulated a growth of 62% in sales. And the highest percentage were exports. It is a shocking indicator of the speed and intensity with which the Chinese electric car circulates in the world.
In the aforementioned report, Tesla recognizes its momentary failure. Neither profits nor revenue met its expectations. And, as a consequence, the stock market value of its shares fell by 8.8%. Added to the balance sheet data was the recognition of the trend towards deceleration and decline in annual growth during the 24th.
All your lifesaving efforts are in the Redwook, the new next-generation car which, according to Tesla, will be competitive in price and performance with Chinese vehicles. A completely new platform is in the design stage. But time is moving and it is estimated that it will only be able to enter the production stage in mid-2025.
And what will happen in the meantime? BYD and other brands of Chinese origin will continue to meet the demands of buyers in the world. To avoid the impact of government measures that limit their projects, some Chinese companies manage the installation of their industrial plants in Europe.
Intelligence, industrial capacity, new concepts of quality and durability of a car? Perhaps there is a little of all that in China’s heads.