But given their cars can be somewhere between three and five times more expensive than BYD’s cheapest model, the tech will have to be incredibly impressive. Among the gadgetry displayed at the Beijing Auto Show last week were seamless connectivity with smartphones, assisted driving systems and in-car entertainment functions. These all sound like added-extras rather than game-changers.
Then there’s the fact that so many car companies are entering into these partnerships. Volkswagen has a long track record of striking deals with Chinese technology companies. Last week, Toyota unveiled a new partnership with WeChat-owner Tencent. Nissan is, like Tesla, teaming up with Baidu.
Given all this, isn’t there a danger that Musk’s outfit, which currently has roughly 7pc of the Chinese EV market, risks being swamped by the general influx? And how savvy is it for a company that bills itself as a tech company rather than a car company to team up with a tech company to help build some of the tech for its cars?
Lastly, there’s the question of whether today’s partners might become tomorrow’s competitors. There’s a long history of foreign companies forming partnerships or joint ventures with domestic firms in order to gain access to the vast Chinese market only to be unceremoniously ditched after a few years.
One thing’s for sure: Musk needs his latest China gambit to pay off. If not, Tesla’s growing list of problems as a metal-bashing carmaker today may destroy its chances of building a driverless tomorrow.
