Tesla’s CEO Elon Musk is warning Chinese automakers will “demolish” global rivals without trade barriers.

US News reports that Mr Musk’s comments, made during an earnings call, “underscores the heat the US electric vehicle market leader faces from the likes of BYD (pictured), who are racing to expand worldwide.”

The report adds he said the Chinese car companies were the “most competitive” and “will have significant success outside of China, depending on what kind of tariffs or trade barriers are established.”

It goes on to quote Mr Musk as warning: “If there are no trade barriers established, they will pretty much demolish most other car companies in the world. They’re extremely good.”

US News explains that Chinese EV makers, adept at keeping costs in check with a stable supply chain, are moving fast. “With rising competition and excess capacity in China, many are now working on rapidly expanding their foreign footprint after years of state subsidies helped boost domestic sales,” it says.

(Picture – BYD)