Elon Musk says Chinese EV makers will ‘demolish’ other companies

Elon Musk said Chinese electric auto makers will find “significant” success outside of China, even as his firm, Tesla, faces intense competition from these same companies.

“The Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established,” Musk said on Tesla’s earnings call Wednesday.

“Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.”

It’s not the first time Musk, CEO of Tesla, has heaped praise on Chinese EV makers. Last year, the billionaire called Chinese EV firms “the most competitive in the world” and said they are likely to be among the world’s top auto companies.

“If I were to guess … probably some company out of China is the most likely to be second to Tesla,” Musk said.

Tesla’s own shares slid in premarket trade Thursday, after the company posted earnings that missed expectations and warned of a slowdown in 2024.