ZINGER KEY POINTS
- Elon Musk suggested during the earnings call that at least for the near term Tesla is likely to remain unchallenged.
- He seems to think Chinese EV makers are the most hardworking and the smartest.
Tesla Inc. is the frontrunner in the electric vehicle race, although its global market share has eroded amid competition from upstarts and legacy automakers transitioning to EVs.
What Happened:
Tesla CEO Elon Musk Musk said he wasn’t really able to look into the future and predict right now which company with a general solution for self-driving could be a distant second. His reply came in response to a question from Canaccord Genuity analyst George Gianarikas. The analyst asked Musk about the EV competitive landscape five years down the line.
Musk, however, suggested that this scenario wouldn’t last forever, and in five years’ time, probably somebody would have figured it out.
“I don’t think it’s any of the car companies that we’re aware of. But I’m just guessing that someone might be right out eventually, so yes,” Musk added.
When CFO Zachary Kirkhorn brought up the name of Chinese carmakers in this regard, Musk concurred and said he has a lot of respect for car companies in China. He commended them for being the most competitive in the world.
“They work the hardest and they work the smartest, that’s so for the China car companies that we’re competing against,” he said.
“And so we would guess, there is probably some company out of China as the most likely to be second to Tesla.”
Why It’s Important:
Tesla, which once had a dominant market share in China, has now been threatened by domestic upstarts such as Warren Buffett-backed BYD Manufacturing Company Limited, Nio Inc. and Li Auto Inc. BYD, in particular, has been consistently more than doubling its deliveries from a year ago and pursuing international expansion.
Tesla bulls see the need for the company to have a sub-$30,000 car in China to compete against the competitively priced cars of Chinese EV startups.
Price Action:
In premarket trading on Thursday, Tesla shares were up 7.13%, at $154.70, according to Benzinga Pro data.
—
Originally Posted January 26, 2023 – Elon Musk Says Tesla’s Closest EV Competitor Won’t Emerge From US — But This Country
Disclosure: Benzinga
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
