2024-04-06 06:29:00 ET
Summary
- The car market is challenging and competitive, requiring continuous improvement and realignment.
- BYD has an advantage in the market due to its proprietary battery tech, its integrated production strategy and its economies of scale.
- While we believe they are becoming the dominant NEV player, the current environment offers great opportunities as well as great risks.
- We believe that given its price and scale advantages, BYD is well positioned to be the main winner of an ongoing price war.
Here is what Tesla ( TSLA ) CEO Elon Musk argued recently :
"Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world," he said during a Tesla earnings call in January. "They are extremely good."
While he was talking about Chinese EV manufacturers in general, no doubt BYD ( OTCPK:BYDDF ) is the most formidable of these, and after looking at the competitive threat to Nvidia ( NVDA ) in our previous article we'll delve into BYD's dominant position and try to see what could stop them.
The market
In principle, the car market is fairly lousy, it's capital intensive, cyclical, regional, margins tend to be low, and competition cutthroat. Maintaining one's position depends on meticulous continuous improvement, the type that Toyota introduced and perfected after WWII and that Western companies adopted in the 1980s....
Read the full article on Seeking Alpha
For further details see:
BYD Will Come Out As A Winner In The EV Price War