Chinese electric car makers get absolutely massive state subsidies. There are companies like Nio that have never made a single dollar of profit. Nio has been losing money on every single car they sell, to the point where they've been losing almost a billion dollars in the last quarter alone.

However, China doesn't care. The state keeps financing these companies, because if they can undermine European and American auto makers to the point where they're simply unable to compete and maybe even completely collapse, then Chinese car makers will be the only ones left in the market, and they'll be able to charge any price they want.

And realistically, which American or European car maker will be able to compete with a multitude of Chinese competitors that all can afford to lose billions and billions every year without batting an eye?

So that's why they want to fight "low prices."