The automaker Tesla reported its second quarter earnings results on Wednesday after the market close and hosted a Q&A Webcast to answer the questions from analysts and also the top voted ones from its shareholders.
The most voted question — 4,600 votes from Tesla shareholders representing 15.6 Million shares — was regarding the Chinese EV manufacturers and how can Tesla stay ahead of them in China and also outside.
“Chinese EV manufacturers seem to be doing a better job than their western competitors (excluding Tesla) at innovating in software and design. How can Tesla make sure the company is staying ahead of those manufacturers, both within and without China?”
In the answer, Tesla CEO enhanced their competitiveness and the hard work adding that the companies that are not as competitive as them will suffer a market share decline.
“Well, right now, the best Chinese EV manufacturer is Tesla. We are actually doing the best, thanks to our incredible team in China. But I have a lot of respect for the Chinese, our manufacturers and EV manufacturers in particular. I think they will be a force to be reckoned with worldwide. They are very – they are smart and they are hardworking. And I think anyone who is not – any company that’s not as competitive as them will obviously suffer a market share decline. So obviously, we have a lot of respect for the current companies in China and then their capabilities, yes”.
Here’s the answer from Tesla’s CEO.
This was not the first time Tesla’s CEO praised the EV manufacturers from China. In mid-May, when questioned about the relevance of China, Elon Musk said there are “super talented hard-working people in China”.
“I think there will be some very strong [EV] companies coming out of China. There are just a lot of super talented hard-working people in China that are strongly believing in manufacturing. They won’t just be burning the midnight oil, they’ll be burning the 3AM oil. They won’t even leave the factory type-of-thing, whereas, in America, people are trying to avoid going to work at all.”
“We’re not expecting to open any additional plants in China in the near future. We will be expanding our Shanghai factory but our focus of production will be on the two new factories that we’re recently completed (Berlin and Austin, Texas)”, Musk added.
In the first half of the year, the second biggest EV maker BYD — which is backed by Warren Buffett — sold a total of 323,519 fully electric vehicles accounting for 50.5% of its total sales of 641,350 new energy vehicles (NEV). In the same period, Tesla sold 564,000 electric vehicles maintaining its throne as the world’s largest EV manufacturer.