The Rise of Chinese EV Makers: Elon Musk Praises China’s Manufacturing Prowess and Work Ethic
In 2011, Elon Musk criticized the quality of electric vehicles made by China’s BYD. However, he has since acknowledged that their cars have become highly competitive. At the New York Times Dealbook conference, Musk gave further praise to Chinese EV manufacturers, stating that China is excellent at manufacturing and has an incredible work ethic.
Musk even suggested that the top 10 automakers of the future might mainly be Chinese companies. However, he still believes that Tesla will remain on top. Some people speculate that the top 10 car companies could be Tesla followed by nine Chinese automakers, and Musk thinks they might be onto something.
BYD: A Manufacturing Powerhouse
BYD, in particular, has impressed investors with its manufacturing prowess. Berkshire Hathaway’s vice chairman, Charlie Munger, who recently passed away, led a successful investment in BYD. Munger praised BYD’s founder and CEO, Wang Chuanfu, and described him as a “natural engineer.” He even claimed that Wang is better at making things than Elon Musk.
BYD nearly surpassed Tesla in global EV sales during the third quarter. It is expected to overtake Tesla soon, even without entering the US market.
The Future of Chinese Automakers
Wang Chuanfu believes that many Chinese automakers, including Nio, Xpeng, and Li Auto, have a promising future. He has called for Chinese automakers to go global and challenge the established industry leaders.
Facing Competition from China’s EV Makers
Elon Musk is not the only one keeping an eye on China’s formidable EV manufacturers. Ford Motor executive chairman Bill Ford Jr. warns that US automakers are not yet ready to compete with Chinese companies on electric vehicles. China remains the largest EV market globally, accounting for 59% of global sales last year.
One advantage that China holds is its dominance in the EV supply chain. BYD, for example, can keep its vehicle prices low because it owns the entire EV battery supply chain, from raw materials to finished battery packs, and even designs its own semiconductors. This advantage allows Chinese companies to quickly develop and export affordable EVs.
Chinese EVs, such as BYD’s Seagull, are rapidly gaining popularity and disrupting overseas markets. Tesla considers the Chinese league to be the most competitive in terms of EV manufacturing and innovation.
