From Fortune:

Elon Musk warns of increasing competition from Chinese EV automakers. Tesla’s CEO admits that Chinese car companies are the most globally competitive in the world, with BYD taking the crown as the top-selling EV brand, outselling Tesla in the final quarter of 2023. Regulatory scrutiny is growing in both Europe and the US

The European Commission has launched an anti-subsidy probe into Chinese EV brands, while the Biden administration has barred vehicles that use Chinese-made battery parts from being eligible for consumer tax credits. The US also imposes a 25% levy on imported Chinese cars and an extended 2.5% tariff on all auto imports. Meanwhile, the European Union currently imposes a 10% tariff on imported vehicles.

Chinese competitors challenge Tesla in the world’s largest EV market, including BYD, GAC Group, Nio, Xpeng, and even tech companies like Xiaomi. Tesla started a price war in China, cutting prices of its Model 3 and Model Y cars in a bid to capture market share. However, Tesla warned of slower growth in the coming year, causing shares to drop by 6% in after-hours trading.



Read more: Tesla CEO Elon Musk warns China EVs will ‘demolish’ competition