Maybe but battery prices have been falling geometrically and that’s the most expensive part of an EV.
A tidal wave of cheap EVs are coming, and not just from China. Ford apparently has a secretive cheap EV platform project in development. I’m sure there are others.
BTW I have a hypothesis that Elon is now working to get Trump elected because Trump will erect tariffs not just against cheap EVs but cheap batteries that domestic competitors to Tesla could use. If companies like Ford can buy cheap CATL batteries then that’s just as bad for Tesla as China selling EVs here.
Tariffs will only delay though. The hyper deflationary effect of tech is coming for cars. A car is just another tech gadget that is about to get cheap. Car companies that don’t optimize for this will die or collapse down to niche.
Edit: I will make a wild prediction. In five years you will get a 250 mile range small EV with adaptive cruise and other nice features for under $15k new.
Tesla is building the cars in China that they sell in China, and selling them for a profit. That’s perfectly fine, China is not worried about protecting their EV industry from Chinese workers building Chinese Teslas.
If China was building the cars in the USA that they wanted to sell in the USA, and selling them at a profit, they wouldn’t be looking at 50% tariff either.
The issue is only if/when EVs made in Mexico by Chinese workers living in Mexico are being dumped into the US market below cost in an attempt to destabilize the US auto market, and China thinks they can hide behind the USMCA free trade agreement to do it all tariff free.
Chinese Teslas are made in China, using Chinese batteries. BYD/Xiaomi can always do the same in the US (or just setup in Mexico and take advantage of Nafta or whatever the successor that does the same thing is called).
Hmm… if that’s the case then Elon is just voting against his economic interests like most of Trump’s other voters. They really have lost it over culture war nonsense.
tariffs are already in place for China EV's, Biden / Trump will inevitably raise them further to protect US auto manufacturers, even going as far as putting tariffs on 3rd country exports (i.e Mexico) to ensure these vehicles don't get in. The US consumer will have to make do with Tesla, and hope that Elon can produce a people's car for the mass market
Trump won't protect Elon. BYD is going to build cars in Mexico to take advantage of the USMCA. Stopping that would require Trump admitting one of his greatest accomplishments was flawed.
