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.”
Capitalists suddenly stop loving the free market when it hurts their profits
The argument is that it is NOT a free market, because the Chinese cars are government subsidized. A Government subsidized company is not part of a free market.
so like tesla?
Yes. Absolutely, which makes it weird that Stellantis feel they need to warn Tesla, when they are very much beneficiaries in both USA and China.
How many billions did this not founding member of Tesla did he get from government again?
Isn’t that what the tax credits are?
That said, it’s entirely reasonable for a country to levy tariffs on another country’s goods to support their own industries. Other countries do that to America.
Be ready for be down voted for say that (it’s true too)
No shit. They’re getting huge governmental help, openly steal from non-chinese companies, global trade is already structured around them, and they can utilise literal slave labour.
But most importantly, China is targeting a market that no other EV maker wants to go into first : Reasonably priced EVs.
This guy doesn’t care about any of the above. He just doesnt want the EVs he sells to lose their incredibly high margins. If china comes in and swoops up a buyer at 22k then he loses one at 52k.
That’s it. These vendors could take the legs out of China in the market by offering comparable cars at comparable prices, but they want all EVs to stay “luxury” instead. That’s China’s real threat. They are dropping the bottom out of the artificial high priced market with reasonably priced cars.
Sounds like your standard USA corporation
The risk is that he would actually have to compete instead of resting on the beach. It’s good that these people are sweating when some fire is placed under their butts in the form of competition.
My next car will be electric, I have over 250k on my ice car and it’s only now just starting to show wear.
I haven’t purchased an electric because of the price, but I’ll definitely buy a $22k Chinese should they arrive on these shores.
Cry me a river.
Read the article. It’s not crying. It’s acknowledgment of a new legitimate competitor like Japan and South Korea became. It’s a call to arms for US manufacturers to get better. This is pro consumer.
Free market wen china : >:(
I hear you, but this is Lemmy, we’re all supposed to be CCP shills and think free markets are the worst thing ever.
Tesla luv those subsidies
Last time I checked BYD prices, they were not cheaper than other EVs.
What am I missing?
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Your own inept management in the face of obvious consumer demand for a cheap, basic EV for all is the biggest risk. Fucking out of touch idiots.
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.
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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.
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It’s okay, you’ve missed mine from the beginning.
