Stellantis CEO says Chinese EVs are ‘possibly the biggest risk’ facing his carmaker and Tesla
Stellantis CEO says Chinese EVs are ‘possibly the biggest risk’ facing his carmaker and Tesla
The owner of the Dodge, Jeep, and Chrysler brands aims to take on Chinese EVs while avoiding a “race to the bottom.”
Stellantis CEO says Chinese EVs are ‘possibly the biggest risk’ facing his carmaker and Tesla::The owner of the Dodge, Jeep, and Chrysler brands aims to take on Chinese EVs while avoiding a “race to the bottom.”
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I wanna say just compete better, but the only way to do that is lower employee wages and reduce regulations.
What about building a better product?
Because the competition is on price, EVs need to compete with cheaper ICE cars.
It's very difficult to compete on price against companies that are heavily subsidized by the government.
Tesla however also enjoy those subsidies because they manufacture cars for EU in China. So it's kind of puzzling why Stellantis would think this is a concern for Tesla too, when they are one of the beneficiaries.Probably because BYD recently overtook Tesla as the world’s largest EV manufacturer.
If/when that realisation hits Wall Street, Tesla shares are going to take a massive hit.
Yes BYD has surpassed Tesla on equal terms, or rather terms that actually benefit Tesla.
Tesla enjoys massive benefits in both USA selling EV quotas to other makers, and enjoying tax benefits and subsidies on top. In China they enjoy the same benefits of near zero tax, and benefits for selling EVs.
Tesla is surpassed by BYD now, but that will only get worse if EU regulate Chinese made cars.
Again I don't see how the warning against Chinese subsidized cars is relevant to Tesla. Except the warning could be that Tesla will lose even more market share if they lose their double ended benefits in both USA and China, that clearly make them more competitive in EU and globally too.
That's true for every consumer product. The key here is segmentation and (re)positioning.
Today cellphones are the cheapest they have ever been. Still, iPhone was never more expensive.
BYD and cia are not only building a cheaper product, they're also building better ones at their price range.
iPhones are not better product than other phones though, so building a better product wouldn't matter in that example.
They're building the only ones at that price range because other than Tesla, BYD is the only producer that builds their own batteries.
It's not an apple with apple comparison though. People are willing to pay a higher price for EV when factoring in reduced maintenance costs, charging and ?? environmental benefit.
Wealth inequality is growing worldwide, many of us cannot afford higher priced products when it comes to large purchases like cars and that's not going to change anytime soon.
A phone as a luxury good, yeah it's expensive but do-able. A non-cheap EV is like 10x the price of a phone however.
Eh, I wouldn't classify a phone as a luxury good. Id also say a non-cheap EV is more like 50-60 times a phone. But there's definitely a gap in society for those that can buy new cars, let alone new EVs
How about not taking millions as CEO compensation instead of reducing employee wages? Oh no, they need another yacht.
He says he wants to avoid "a race to the bottom". This is the most important part, it's corporate-speak for "competition".
This isn't a warning that Chinese manufacturers are competing in the luxury car market. They're creating affordable ones, and they're going to eat everyone's lunch because Western manufacturers want to literally avoid competition.
Lowering wages and reducing regulations is not required to compete, but willingness to manufacture affordable cars is.
Lowering wages and reducing regulations is not required to compete
It is if your competition is a nation that treats its workers like even bigger garbage than western companies do. They cannot go lower than China can.
I think you missed my point.
It's okay, you've missed mine from the beginning.
Tariffs work as well. But then we'd have to start manufacturing stuff for ourselves rather than getting other countries to do it.