https://www.theguardian.com/business/2024/apr/26/why-elon-musk-is...

https://www.theguardian.com/business/2024/apr/26/why-elon-musk-is-right-once-booming-electric-car-sales-are-starting-to-stall

an excerpt from the article:

Perhaps the biggest reason European and US carmakers are unlikely to reverse course on EVs is China. Growth in Chinese sales may have slowed in the first quarter of 2024 compared with last year, but they still topped a million, according to industry data cited by Reuters. A host of Chinese carmakers – including the leader BYD and new, well-funded entrants such as phone maker Xiaomi – are battling to dominate their home market and win a new role as the world’s biggest car exporter.

The German chancelllor, Olaf Scholz, on his recent trip to China, argued against protectionism and said Chinese manufacturers must still have access to the European market – acutely aware that penalising Chinese EVs would meet swift retaliation against Germany’s carmakers.

For electric carmakers, the huge competition is biting – forcing even Tesla to cut prices to keep selling its cars. That competition will cause car executives sleepless nights – and could force some to merge or face bankruptcy, which could cause job losses. But it could also push prices down further, making electric cars cheaper than petrol equivalents.

“It’s potentially a good thing for consumers,” said Ian Henry. “Whether it’s a good thing for manufacturers who are trying to make money is a different question.”