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Funny how its always a Tesla killer, rather then a killer of the legacy manufactures. That's the actual story here. BYD in China more broadly spell doom for GM

Funny how its always a Tesla killer, rather then a killer of the legacy manufactures. That's the actual story here. BYD in China more broadly spell doom for GM and friends, far more then Tesla.

dragontamer 3y ago
It's Tesla that has a substantial Chinese (and European) footprint where BYD is operating though. GM/Ford/Stellaris aren't making a push for EVs in China like Tesla is. BYD just doesn't compete with USAs automakers outside of their Chinese footprints. (Maybe European competition since Europe is importing a lot of Chinese EVs in practice right now)
- panick21_ 3y ago
  > GM/Ford/Stellaris aren't making a push for EVs in China like Tesla is. China is an incredibly important market for cars, its not about EV or not. And to just say 'well, see we don't even car about this huge market' isn't really much of a strategy, its just giving up. My point was not about GM and US companies, it was about legacy EV companies in general. VW has massive problems in China as well. My broad point is that BYD is a problem for everybody. > BYD just doesn't compete with USAs automakers outside of their Chinese footprints. But they will. They are currently expanding all over the world. Its a matter of time.
  - dragontamer 3y ago
    You think the import tariffs on Chinese cars is going to come down any time soon? Or that American politics would change such that USA would accept a large number of such cars? If not.... then no. USA pretty much doesn't have to worry about it. USA can afford higher car prices, and it's a political tradeoff that's really easy to make right now. I'm willing to bet on higher such tariffs if Chinese car prices drop any further.
    - jbm 3y ago
      I understand where you are coming from, but it isn't that simple. American investors are very, very much into overseas expansions. Assuming the cars BYD puts out really are that good (which is a big if), this could seriously damage exports. The US market is the most valuable, so these companies will survive, but the stock will not thrive.
      - dragontamer 3y ago
        Some investors are. Other investors are keen on just preventing this Chinese deflation / possible Chinese recession from destroying our own portfolios. Tesla is exporting Gigafactory Shanghai Tesla's to Europe right now IIRC.
fma 3y ago
You know, GM has twp joint ventures in China, and Wuling especially has popular EVs (behind BYD, and Tesla of course). Below commenter also points out GM isn't aggressive in China... Maybe should have picked Ford as a better example.
- panick21_ 3y ago
  I was referring to all legacy manufactures. VW is having lots of issues in China. GM isn't aggressive in China because they know they can't really win. GM and co attitude being 'who cares about that large market we don't even want to compete' isn't really all that convincing as a strategy.

Funny how its always a Tesla killer, rather then a killer of the legacy manufactures. That's the actual story here. BYD in China more broadly spell doom for GM and friends, far more then Tesla.

dragontamer 3y ago

It's Tesla that has a substantial Chinese (and European) footprint where BYD is operating though. GM/Ford/Stellaris aren't making a push for EVs in China like Tesla is. BYD just doesn't compete with USAs automakers outside of their Chinese footprints. (Maybe European competition since Europe is importing a lot of Chinese EVs in practice right now)

panick21_ 3y ago
> GM/Ford/Stellaris aren't making a push for EVs in China like Tesla is. China is an incredibly important market for cars, its not about EV or not. And to just say 'well, see we don't even car about this huge market' isn't really much of a strategy, its just giving up. My point was not about GM and US companies, it was about legacy EV companies in general. VW has massive problems in China as well. My broad point is that BYD is a problem for everybody. > BYD just doesn't compete with USAs automakers outside of their Chinese footprints. But they will. They are currently expanding all over the world. Its a matter of time.
- dragontamer 3y ago
  You think the import tariffs on Chinese cars is going to come down any time soon? Or that American politics would change such that USA would accept a large number of such cars? If not.... then no. USA pretty much doesn't have to worry about it. USA can afford higher car prices, and it's a political tradeoff that's really easy to make right now. I'm willing to bet on higher such tariffs if Chinese car prices drop any further.
  - jbm 3y ago
    I understand where you are coming from, but it isn't that simple. American investors are very, very much into overseas expansions. Assuming the cars BYD puts out really are that good (which is a big if), this could seriously damage exports. The US market is the most valuable, so these companies will survive, but the stock will not thrive.
    - dragontamer 3y ago
      Some investors are. Other investors are keen on just preventing this Chinese deflation / possible Chinese recession from destroying our own portfolios. Tesla is exporting Gigafactory Shanghai Tesla's to Europe right now IIRC.

fma 3y ago

You know, GM has twp joint ventures in China, and Wuling especially has popular EVs (behind BYD, and Tesla of course). Below commenter also points out GM isn't aggressive in China... Maybe should have picked Ford as a better example.

panick21_ 3y ago
I was referring to all legacy manufactures. VW is having lots of issues in China. GM isn't aggressive in China because they know they can't really win. GM and co attitude being 'who cares about that large market we don't even want to compete' isn't really all that convincing as a strategy.