Hey everybody, welcome back to the Elon Musk podcast. This is a show where we discuss. The critical. Crossroads the shape. SpaceX. Tesla X, The Boring Company and Neuralink and I'm your host Will Walden If you want uninterrupted episodes of the Elon Musk podcast, please. Go to. Clubelon.supercast.com to find out how. There's a. Link in the show notes.
So Elon Musk recently made a compelling statement about the future of electric vehicles, emphasizing the potential dominance of Chinese EV manufacturers like BYDNYO and Jeping on a global scale. Musk comments came at the time with Tesla. His pioneered EV company is navigating through a sea of challenges, including fierce competition from these rising stars.
And during Tesla's earnings call, Musk didn't mince words about the prowess of Chinese EV makers, describing them as the most formidable competitors worldwide. His prediction hinges on the absence of trade barriers, which, if not implemented, could lead to these companies overwhelming most of the global competitors. This isn't the first time that Musk has lauded the capabilities of Chinese EV manufacturers, though.
Previously, he acknowledged their competitive edge and even speculated that one of them might emerge as a close second to Tesla in the global EV hierarchy. This kind of recognition from Musk underscores the significant strides the Chinese companies have made in the EV sector. Now, the European Commission's ongoing investigation into subsidies for Chinese EV makers is another layer to this complex scenario. With the potential for increased
tariffs on Chinese EVs. The outcome of this probe could significantly influence the competitive dynamics in the European market where Chinese brands are aggressively expanding their footprint. The expansion of Chinese EV brands in the international markets isn't just a strategic move though, it's a showcase of their ambition and their new tech. And Byd's achievement of outselling Tesla in the battery powered car segment in the fourth quarter is a testament to this growing competitive
pressure. Amidst this backdrop, Tesla is grappling with its own set of challenges, as evidenced by less than expected earnings report in Musk's acknowledgement of a growth slowdown in 2024. Despite these hurdles, Musk announced an optimistic plan to launch a $25,000 entry level Tesla, aiming to rejuvenate the company's growth trajectory.
Now most strategic shift to prioritize the production of this entry level model in Mexico, citing the need for close oversight by Tesla's engineering team, reflects the company's commitment to innovation and quality now. This move, however, suggests that Tesla anticipates potential challenges, possibly a slow ramp up of production for this new vehicle platform. Now, Tesla's stock performance has also been underwhelming, with a notable decline since the
year's start. This trend is exacerbated by the recent earnings call, where Musk's cautious outlook for 2024 contributed to a further dip in investor confidence.
Now the skepticism surrounding Tesla's growth prospects is echoed by financial analysts, with Piper Sandler highlighting the potential for stock of Tesla to experience stagnant trading in the near term due to the anticipated quote growth air pocket in 2024. Now Tesla's ambitious full self driving, or FSD technology also finds itself in a crossroads right now, with Musk revealing that discussions to license this technology to other car makers have not borne fruit.
This revelation, coupled with Musk's admission of the low probability of success for Tesla's custom built AI supercomputer Dojo, adds to the company's current predicaments. Furthermore, must caution regarding the timeline and feasibility of launching the $25,000 entry level Tesla. As another layer of uncertainty. Critics, including noted short seller Jim Chanos, question the viability of initiating production without even a prototype, a standard practice
in the automotive industry. Now, rumors about the entry level Tesla lacking traditional components like a steering wheel or pedals, presumably to cut costs and focus on full autonomy. Well, they're just that. They're just rumors. They need a steering wheel to have a $25,000 car. Steering wheels don't cost a lot of money, and pedals don't cost a lot of money either.
Now, such a design choice would necessitate significant advancements in autonomous driving technology, aligning with Musk's vision of advancing Tesla's jet GPT moment. And Tesla's situation is emblematic of the broader challenges facing the EV industry right now, where innovation, competition, and regulatory landscapes intertwined to shape the future of transportation.
And as Tesla strives to maintain its pioneering status, the company must navigate these complexities while contending with the rising tide of competent competitors, especially from China. Now, most strategic decisions from emphasizing the development of an entry level model depending on advanced technologies like Full Self Driving and Dojo highlight Tesla's relentless pursuit of
innovation. Yet these initiatives come with their own risks and uncertainties, reflecting the volatile nature of the EV market. The competitive pressure from Chinese EV makers combined with Tesla's internal challenges paints a picture of an industry at a critical juncture as companies vie for the dominance, the strategies they employ and the innovations they introduce will likely redefine the whole automotive industry going
forward. And Musk acknowledgement of the competitive strength of Chinese EV manufacturers alongside Tesla's ongoing endeavors to innovate and expand its product lineup shows that there's an intricate dance of competition and collaboration that will define the EV sector in the next
coming years. Now, as the EV market continues to evolve, the actions of the industry leaders like Tesla in the emerging force of Chinese manufacturers will be watched closely by people like myself and yourself who are into EVs and electric vehicles and the future of transportation. And the outcomes of these dynamics will not only influence the future of these companies, but also shape the trajectory of global transportation. Hey, thank you so much for
listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I'd greatly appreciate it. It helps out the show tremendously and you'll never miss an episode and each episode is about 10 minutes or less to get you caught up quickly. And please, if you want to support the show even more, go to patreon.com/stage Zero and please take care of yourselves
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