CEO of Tesla says trade obstacles won’t stop Chinese EV companies from “demolishing” competitors.

For example, China’s SAIC Motor (600104.SS) has been ordering additional vehicle vessels for its fleet in an effort to reduce transportation costs as it seeks to increase sales abroad.

However, Spencer Imel, a partner at consumer research firm Lansgton, pointed out that Chinese automakers still have a long way to go before gaining market share in the United States due to their incredibly low brand awareness and mediocre reliability, durability, and safety.

“They enjoy high demand in China for innovations such as in-car technology and battery swapping,” Imel stated. “That, we believe, will be an important ingredient and a differentiator in their future growth overseas.”

Musk’s remarks coincide with the accelerating pace of the US presidential election. China is adamant about controlling the EV industry, and President Joe Biden has stated that he “won’t let that happen.”

The leading candidate for the Republican presidential nomination this year, former president Donald Trump, has hinted that he would redouble his efforts to impose harsher tariffs if elected. He has called for a 10% universal duty on all imports into the United States and the revocation of China’s most-favored-nation trading status.

Musk stated on Wednesday that there was “no obvious opportunity” for Tesla to collaborate with its Chinese competitors, but that Tesla was willing to license other technology like self-driving cars and grant them access to its charging network.