The Threat China Poses to the Electric Vehicle and Auto Industry, According to Tesla CEO Elon Musk
On April 9, 2024, Tesla Chief Executive Elon Musk expressed his concerns about the competition China brings to the electric vehicle (EV) market and the auto industry as a whole. In an interview with Norges Bank Investment Management CEO Nicolai Tangen, Musk discussed various topics including the impact of China on the EV sector.
While Musk acknowledged that the adoption of electric cars is still progressing rapidly, he emphasized the significant threat that Chinese automakers pose to the industry. He highlighted the need for all cars to eventually transition to electric power, a vision he continues to uphold despite challenges in the market.
Baird analyst Ben Kallo reiterated his positive outlook on Tesla stock following Musk’s comments. With a price target of $280, Kallo emphasized Musk’s confidence in the future of electric vehicles and the unique strengths of Tesla in data collection and real-world driving data.
Discussing the obstacles in the development of artificial intelligence (AI), Musk mentioned the challenges posed by high-voltage transformers and the potential impact on the industry in the coming years. He also hinted at the possibility of expanding Tesla’s production footprint to India, citing the country’s growing population as a key factor.
On the topic of SpaceX, Musk shared his ambitious goals for the company, including landing the first Starship spacecraft on Mars within five years. He outlined plans for building a self-sufficient city on Mars, envisioning a future with regular flights to the red planet.
Despite recent reports about Tesla halting the development of an affordable electric car, Musk did not address these claims directly in the interview. He dismissed allegations of Tesla’s robotaxis and next-generation vehicles being put on hold, labeling such reports as false.
As China continues to shape the landscape of the auto industry and electric vehicle market, Elon Musk remains vigilant about the challenges and opportunities that lie ahead for Tesla and the broader industry.
(This article is translated from MarketWatch. MarketWatch is operated by Dow Jones, the parent company of The Wall Street Journal, but MarketWatch is independent from Dow Jones Newswires and The Wall Street Journal.)