Tesla founder Elon Musk says the Chinese electric vehicle (EV) maker will be his company's closest competitor.
The statement was made in response to questions about the competitive landscape for electric cars at Tesla's earnings announcement on Wednesday.
He said the company is excited about the future and it's going to be great.
He added that Tesla has a lot of respect for car companies in China because they are the most competitive in the world, work hard and are very smart.
Thus, Musk thinks that some companies from China have the potential to become a 'second Tesla'.
Tesla has several challengers in China in the electric vehicle space, including many startups such as Nio, Xpeng and Li Auto.
However, Tesla's biggest competitor in Beijing that is clearly visible so far is Warren Buffett-backed automaker BYD Auto.
Last year, the Shaanxi Province-based company sold 911,140 EVs worldwide and 1.8 million other vehicles. Tesla delivered 1.31 million cars in total in 2022.
Tesla has faced major challenges in China over the past year due to the imposed Covid restrictions, prompting it to lower car prices due to weak consumer demand.
