Could China try to mess with Tesla?
Tesla has best margins in EV industry which means it can afford to cut prices the most, forcing other EVs to cut prices too. But the difference for other EVs with lower margins is that their price cutting might translate to unsustainable losses, and they might ultimately go out of business. This seems to me like typical monopoly behaviour, big fish bullying small fish. Even if smaller EVs dont go out of business, I can see a world where Tesla squeezes them so hard that it ends up eating up 90%+ of market share. I wonder what will China governments response be if there is risk of companies like $XPeng(XPEV.US$, $Li Auto(LI.US$, $BYD COMPANY(01211.HK$, $NIO Inc(NIO.US$ etc going out of business and/or losing all their market share due to Teslas price cutting. Let me know your thoughts
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71781791 : I'll i see is FUD. Might as well be another news article.
TeslaSmurf : Not going to happend.
The Chinese government will bail out any losses (already done it with Nio and others on the verge of bankruptcy) and support the EV shift because they know they will be overall the world leaders.
Tesla will be first by far in the whole world, but they will sum about 100 EV brands. Then, they need Tesla’s technological “guidance” and they consider that Tesla IS Chinese too, as Shanghai keeps being the main export hub. So, at the end, everything will be ok both for Tesla and for the best 20/30 (At least) of the +100Chinese actual brands. The losers will merge or be absorbed by the winners.
风生水起 : Why are there such doubts?
71781791 : they have puts in tesla and are buying up this crap that will dump sooner or later