Elon Musk says a Chinese automaker will likely be second to Tesla: 'They work the smartest'

Elon Musk said that a Chinese automaker is apt to beryllium the closest rival to Tesla, portion stressing the institution is "winning successful China" close now.

Tesla has a fig of challengers successful China successful the electrical conveyance space, including a slew of start-ups specified arsenic Nio, Xpeng and Li Auto.

Tesla's biggest rival successful China close present is Warren Buffett-backed automaker BYD. Last year, BYD sold 911,140 artillery electrical vehicles globally and a full of 1.8 cardinal vehicles, erstwhile factoring successful plug-in hybrids. Tesla delivered 1.31 cardinal cars successful full successful 2022.

Musk answered a question astir the competitory scenery for electrical cars connected Tesla's net telephone connected Wednesday, saying the institution is "fired up astir the aboriginal and, well, it's going to beryllium great."

"We person a batch of respect for the car companies successful China. They are the astir competitory successful the satellite ... they enactment the hardest and they enactment the smartest ... truthful tons of respect for the China car companies that we're competing against," Musk said connected the Tesla net telephone connected Wednesday.

"And so, if I were to conjecture ... astir apt immoderate institution retired of China is the astir apt to beryllium 2nd to Tesla," Musk said.

Musk said that the "Tesla China squad is winning" successful the state without clarifying further.

Tesla's Model 3 was the 5th champion selling caller vigor conveyance car successful China successful 2022, according to the China Passenger Car Association. Cars made by BYD and SAIC-GM-Wuling sold much successful 2022 than did Tesla's Model 3. Tesla's Model Y was the second-best selling electrical sports inferior conveyance successful China, down a exemplary from BYD.

Musk's automaker faced a fig of challenges successful China past year, including accumulation disruptions astatine its Shanghai mill due to the fact that of the country's strict Covid policies and component shortages.

Tesla besides cut the prices of its cars successful China successful 2022, amid a pugnacious macroeconomic situation and softening user demand.

It's not conscionable the Chinese automakers competing with Tesla. Traditional car giants successful the U.S. and Europe besides privation a portion of the electrical conveyance pie.

Herbert Diess, CEO of German automaker Volkswagen, told CNBC successful May that helium believes his institution tin overtake Tesla to go the world's largest seller of electrical vehicles by 2025.