When the world’s richest person speaks about a global superpower in energetic terms, we listen. On a recent episode of the Moonshots podcast, Tesla and SpaceX boss Elon Musk dropped a line that instantly lit up business and tech circles. He joked that it feels as though China does everything he suggests, implying the Asian superpower’s admiration and respect.
He himself described China’s moves into batteries, electric cars, and solar energy with a mix of admiration and bemusement, saying it “seems like China listens to everything I say, and does it basically” — or else they are independently running the same playbook he’s been pushing for years. What are the odds?
Far from a throwaway line, Musk’s remark captured a reality that is starting to reshape global economics and industrial competition: China’s clean tech rise is real, enormous, and happening fast. It’s hardly a joking matter, especially not when the person making the joke once complained that his rival is eating their lunch. Something else that isn’t a joking matter is that fact that once upon a time, Musk laughed away the idea of the Chinese brand BYD as a competitor. Today, BYD has unseated Tesla as the global king of EV sales.
What’s So Funny?
In a 2011 Bloomberg interview, Musk dismissed the idea of BYD as a Tesla rival with loud laughter and the remark, “Have you seen their car? I don’t think they have a great product. I don’t think it’s particularly attractive.” That moment has since resurfaced repeatedly, especially as BYD has grown into Tesla’s most formidable rival, overtaking it in global EV sales.
Musk’s mocking condescension didn’t age well because BYD has, over the past decade, invested heavily in battery technology, affordable EVs, and global expansion. By 2024, the Chinese brand overtook Tesla in global EV sales and revenue to cement its position as the world’s largest EV maker.
Meanwhile, Tesla struggled with delivery slumps, brand perception issues, and growing competition from Chinese automakers. For this reason, the old clip of Musk laughing at BYD keep resurfacing online, often used to highlight how drastically the EV market has changed.
At a glance, Musk’s description of China watching his lips sounds almost self-aggrandizing. Or self-effacing. You can picture him, relaxed and laughing on a podcast, amazed that a nation of 1.4 billion people might be echoing his own strategic advice to the United States on sustainable energy. But there’s a serious side to this levity. It reflects how China has rapidly scaled up its production of battery packs, electrified vehicles, and solar power—admittedly, exactly Musk’s longtime priorities for the world’s decarbonization effort.
A Surprise Competitor
Only a few years ago, Tesla dominated global headlines as the king of electric vehicles (EVs). Today that position has a very serious challenger. BYD, China’s largest EV maker, has overtaken Tesla in annual vehicle sales. That shift did not escape Musk’s notice (or his comments this week) and it marks a symbolic turning point in the global EV market, to say the least.
China’s EV output surged to around 13 million vehicles in 2024, a staggering figure with 70 percent year-on-year growth. That puts the country in a dominant position on battery production and EV supply chains, with firms such as CATL and BYD leading the way. Musk essentially conceded that this scale is something even he didn’t foresee so quickly. That’s probably because he was laughing at the time.
For readers imagining Tesla and China as friendly rivals, this is not quite the picture. Musk’s admiration is tinged with awkward acknowledgement that China might be learning from his own public blueprint for a sustainable future. Whether that’s an intentional influence or simply parallel evolution is something even he openly questioned.
Beyond Cars: The AI Power Play
Musk’s newfound respect extends past electric rides on the road to the next frontier: artificial intelligence. In a separate interview, he conceded that China is on track to “far exceed the rest of the world” in AI computing capacity. That claim is rooted in China’s huge investments in electricity infrastructure, which Musk says is the true bottleneck in scaling powerful AI systems.
This prediction flips the typical narrative. For years, the United States has been seen as the frontrunner in AI via Silicon Valley innovation. Musk’s comments suggest that energy production, not just chips and talent, will decide the race, and in that domain, China currently holds a considerable edge.
What makes Musk’s praise noteworthy is not just the praise itself but the context. China’s rapid tech ascent comes with intense global debate. Some see it as an economic miracle. Others criticize Beijing’s political system or see its industrial policies as threatening Western competitiveness. Musk’s lighthearted line about China doing “everything he says” plays into both narratives: hilarity on the surface with intense strategic subtext beneath.
Some observers argue Musk’s soft tone toward China may be partly strategic too. Tesla has deep business interests there, including major manufacturing plants and a huge consumer market. Some commentators have even suggested that his bullish public comments help keep business relations smooth despite rising competition.
Listen to the Moonshot podcast here.