Why Tesla is Worried About China's BYD
Have you recently heard Elon Musk saying on Tesla (TSLA) stock earnings call that without trade barriers Chinese EV car makers will demolish American EV producers? One Chinese EV company, called BYD Auto, stands out. In this Tesla vs BYD video, I will take an in-depth look at who BYD is and why Elon Musk is rightly worried about Chinese EV car producers.
Recently, BYD overtook Tesla Motors (TSLA) as the largest producer of electric vehicles in the world. Although most of its sales are in China (around 70%), BYD is rapidly expanding overseas. With its cost advantages, generous government subsidies and cheap EV models (e.g. BYD Seagull for a mere $11K), BYD poses significant challenges to established car markers, including Tesla.
For now, 25% tariff in the US and the denial of "Buy America" tax credits keep Chinese EV car makers at bay. But, for how long? If Chinese car markers start building factories in/around the US, Tesla stock could be up for trouble.
Read more about Tesla vs BYD on my blog: https://andriyblokhin.com/tesla-vs-byd/
Subscribe to my channel @theinvestingmantic for more investment news and stock analysis.
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Timestamps:
00:00 - Intro
00:44 - Who is BYD Auto EV Company
03:04 - Government Subsidies to EV producers in China and US
05:33 - BYD Competitive Advantages, Tesla Stock vs. BYD comparison
07:13 - BYD Low Priced EV Cars
08:12 - BYD Expansion Abroad
10:42 - US Tariff Dilemma
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This video content is for informational purposes only and should not be viewed as legal, tax, investment or financial advice. Please, do your own due diligence, consult a professional and keep your money safe.
#elonmusk #tesla #teslastock
Photo Credits:
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3. Steve Jurvetson, CC BY 2.0, via Wikimedia Commons
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4. User3204, CC BY-SA 4.0, via Wikimedia Commons
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5. HoldenFan1104, CC0, via Wikimedia Commons
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