In order to stand shoulder to shoulder with the development of China and the US, the EU has been strategically emphasizing and regulating ESG in recent years. However, ironically, the existing fast EV conversion strategy has shifted to a structure that gives more power to China, prompting a sudden change in stance to slow down the EV conversion speed.

Elon Musk has been striving to lower prices as much as possible to ultimately distribute as many cars on the actual roads for FSD and AI development, and he has indeed faced conflicts with the US government in the process.

However, by supplying cheap electric cars to the market, China will quickly catch up and ultimately play a strong role in the development of China’s autonomous driving AI technology. The problem is that these are not just cheap cars. Xiaomi cars are equipped with parts from reputable suppliers in Germany, Japan, and other countries. The achievements seem practically impossible without the active support of the Chinese government.

AI is ultimately a battle of data, computing, and energy. If crazily cheap cars are massively supplied, it will not be long before they catch up with the data and algorithm performance Tesla has accumulated.

In the end, it all comes back to semiconductors.

BTW, Xiaomi cars are equipped with Qualcomm and NVIDIA chips.