Decidedly, Elon Musk has set himself the task of seducing Chinese buyers and does not hesitate to caress the builders of the Middle Kingdom in the direction of the hair. By appointing Tesla China boss Tom Zhu to lead the brand’s business in America and Europe, the owner of Twitter will not hesitate to elevate Chinese brands to the level of Tesla’s main competitors in the electric car market. Even if he remains convinced that Tesla will remain a leader in this field. There is no doubt that American, Korean, European or Japanese manufacturers will appreciate it!
More competitive Chinese
Already in 2021, Elon Musk said that Chinese manufacturers are the most competitive in the world. The Tesla boss points to software skills as a major strength. But he also praises the ability of the Chinese to work “harder and smarter,” highlighting that workers at Tesla’s factories in China were not shy about working overtime during the associated pre-Covid-19 restrictions in 2022. BYD, Nio or Xpeng or even Seres that openly target the American “benchmark” are tougher competitors than traditional manufacturers or Western or Asian (Korean) startups and the Japanese).
“Our team wins in China. And we believe that we are really capable of attracting the best talent in China. So we hope this will continue. (Elon Musk)
Aggressive trading strategy
To illustrate the impact and influence of this Chinese auto industry, she managed to get Tesla to cut prices in the Chinese market in order to remain competitive. A successful operation that then spread to the United States and then to other countries. Specifically, why did Tesla make the decision – under the pressure of this overly competitive Chinese competition? – reduce your margins in order to increase sales volumes. An unusual strategy for the head of an American brand that has so far lived comfortably on its achievements as a forerunner and market leader in electric vehicles. But it also demonstrates Tesla’s impact and should send a strong signal to traditional manufacturers that have begun the phase of transition to electric vehicles, more or less fast-paced and forced, without maintaining their historical “superiority” in terms of product.
Source: Reuters.