Business
Elon Musk: Enigmatic, Visionary Billionaire That Thrives On Contradictions
May 12, 2022
January 25, 2024
Elon Musk highlighted Chinese car companies as the "most competitive" during a post-earnings call with analysts on Wednesday. He projected significant global success for them, contingent on the establishment of tariffs or trade barriers. Musk expressed confidence that without trade barriers, these Chinese car manufacturers could potentially outperform most other global competitors, citing their exceptional capabilities.
During a regular briefing on Thursday, the Chinese foreign ministry responded to Musk's comments. They stated that they were unaware of the reports but advocated for "maintaining a fair, just and open business environment." This response underscored China's commitment to fostering an equitable and open marketplace for international business.
Musk's observations and the subsequent response from the Chinese foreign ministry shed light on the evolving dynamics and competition within the global automotive industry, particularly in relation to trade policies and barriers.
Musk's concerns are not unwarranted. Initiating a price war in response to high borrowing costs strained Tesla's margins, causing apprehension among investors. Musk cautioned on Wednesday that Tesla is approaching "the natural limit of cost reduction" with its current lineup.
As reported by Reuters on Tuesday, Tesla aims to introduce a more affordable compact crossover, codenamed "Redwood," in mid-2025 to compete with budget-friendly competitors. Confirming this, Musk stated on Wednesday that Tesla anticipates commencing production of its next-generation electric vehicle at the Texas factory in the latter half of 2025.
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