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I wish I can test drive one of these in the US. Competition is always good for capitalism but I fear for Tesla and the implications for manufacturing their cars
by syntaxing 8y ago
I wish I can test drive one of these in the US. Competition is always good for capitalism but I fear for Tesla and the implications for manufacturing their cars in China soon with many of these Chinese government backed EV companies. That being said, I find it interesting how there's a couple Chinese companies that are on the US stock exchange. A couple of my friends was raving about the NIO IPO a couple months back about how a Chinese government funded "Tesla" cannot fail. It's weird how it's acceptable to buy a "stock" of a company without really owning part of it, similar to Alibaba. The stocks on the exchange is just a subsidy of the company that contracts to share the profit among the holders.
- mruts 8y agoI mean stock literally gives you a fraction of shareholder equity, which in total, is Assets - Liabilities. So maybe you don’t own the assets before the liabilities, but stock is very literally giving you ownership in the company.
- syntaxing 8y agoNot most (if not all) Chinese owned companies on the US stock exchange. Chinese laws prevents the ownership of foreign entities on companies. To circumvent this, most of the "stocks" on the exchange is for a subsidiary and the stock holders has zero ownership over the company, similar to a C stock for Alphabet. Alibaba for example, you are owning a subsidiary that shares the profit in the Cayman Islands. You are not owning any part of the company.