XPEV - Beijing Vs. Detroit: Chinese EV Innovation Speed Could Smash Tariff Barriers And Invade US Auto Sector | Benzinga
China's EV makers are beating their western counterparts in the race to release new car models.
This unprecedented demonstration of production speed is yet another worrying sign for U.S. automakers, who continue to fear the day Chinese EV brands start flooding the American market.
In the last quarter of 2023, the industry witnessed the first time a Chinese EV company (or any company for that matter) surpassed Tesla (NASDAQ:TSLA) as the largest seller of battery-only vehicles. BYD Company ADR (OTC:BYDDY), the Shenzhen-based electric carmaker, sold a record-breaking 526,000 vehicles, against 484,507 for Tesla.
While Tesla still sold more electric cars that year than any other company, the quarterly triumph by a Chinese company was seen by some as an omen of good times ahead for Chinese EV makers and their low-priced vehicles.
U.S. Car Executives Are Worried: U.S. auto industry leaders recently expressed concerns over China’s growing influence in the global EV market. On a recent earnings call, Tesla CEO Elon Musk said that if not for trade restrictions, Chinese automakers could "demolish" their global counterparts.
"Chinese car companies are the most competitive car companies in the world," said Musk.
Chinese carmakers, however, face a 25% tariff in the U.S. market, a measure set forth by form President Donald Trump and maintained by the Biden administration. The restriction has so far warded off Chinese EV makers from flooding the U.S. market, as they have in other high-income territories.
Former Ford Motor Co (NYSE:F) CEO Mark Fields last week called for an outright temporary ban on Chinese cars in order to protect the U.S. industry.
BYD registers virtually no sales in the U.S., which makes its landmark win ...