Detroit? No. Germany? No. Elon Musk sees the toughest competition for Tesla in China, the company he expects is “likely to be second” in electric vehicles.
China is Tesla Inc’s TSLA.O second largest market – accounting for nearly two-thirds of all electric vehicle sales globally in 2022 – and home to Tesla’s largest plant.
It is also a market that has embraced EVs and is filled with rivals competing on style and price, including Xpeng 9868.HK, Nio and BYD Co Ltd 002594.SZ.
Releasing financial results on Wednesday, Tesla said they showed that recent deep price cuts were stimulating demand, and that the company is cutting costs this year with a view to growing as Musk expects .