Elon Musk said Chinese electric vehicle makers like BYD, Nio, and Xpeng will find "significant" success selling EVs outside of China if there are no trade barriers. Musk stated that if trade barriers with China are not established, these automakers "will pretty much demolish most other companies in the world." The European Commission is currently investigating subsidies given to Chinese EV makers, and could potentially impose higher tariffs on Chinese EVs entering Europe. BYD has already expanded sales to markets in Europe, the Middle East, and Southeast Asia, surpassing Tesla's sales in Q4 2023.
