Elon Musk Tesla Face Strong Competition In China As Chinese Company Unveil Cheaper Electric Car
Elon Musk recently becomes the world’s richest man, with a net worth of $194.8 billion, displacing Amazon’s Jeff Bezos, who had held the position since 2017. Elon Musk added $165.5 billion of wealth in the past year thanks to his auto company Tesla. On Thursday, the 7.9% surge in Tesla shares boosted Musk’s worth pass Jeff Bezos on the Bloomberg Billionaires Index.
Currently, Elon Musk is worth $194.8 billion or $9.5 billion more than Amazon.com Jeff Bezos. Though Musk is in a private space exploration race with his Musk’s Space Exploration Technologies Ltd., or SpaceX, his recent surge in wealth came from the climb in the share price of Tesla Inc s an electric automobile company he owned. Tesla Inc’s shares climbed by 743% last year, following consistent profits and demand for its electric cars. Tesla shares have gained more than 23,900% since its 2010 initial public offering.
However, all that would soon change as Elon Musk Tesla Inc. now faces new competition from China. A Chinese automobile company Wuling has unveiled a cheaper electric car which cost just $5,000. It has already overtaken Tesla as the top-selling electric vehicle in China.
Wuling Hongguang Mini EV is a tiny electric car that costs far less than Tesla electric cars, it has become China’s cheapest and most popular electric car brand. With the growing need for an environmentally friendly car in China, consumers have been encouraged to buy the Hongguang Mini EV.
Hongguang Mini EV is a city car with a top speed of 100km/hr; unlike most electric cars what is unique about the Hongguang Mini EV is that it can be charged with the normal 220V outlet. The car is manufactured by a local automobile company Wuling in collaboration with General Motors.
Currently, 30,000 of the Hongguang Mini EVs are produced each month, and the manufacturers are targeting the Chinese consumers but they would soon set their sights on the market of other countries and this would pose a great competition for Elon Musk Tesla electric cars which currently dominated market demands.