BYD vs Tesla - why I think Tesla shares will start to rebound (slowly)
This week we've seen HUGE price cuts by BYD that will change the ball game for the EV market
- BYD $BYD COMPANY(01211.HK$ cut its hybrid BYD Song Pro DMI by 100,000 yuan (US$13,890). Thats amazing and WILL impact the entire new energy vehicle#nev#evindustry.
- BYD cut the price of its cheapest electric car, the Seagull by 5%. Prices now start 69,800 yuan (US$9,700).
- BYD's price for its best-selling car, Yuan Plus crossover (known as Atto 3 in overseas markets) was cut by 12%
- The reasons for the price cuts? lithium carbonate oversupply pushed prices significantly down. Battery costs are down. And BYD's scale and output has increased which dropped its unit costs.
Tesla shares are down 38%. I don't think they will stay at these levels as end of quarter rebalancing is ahead
Tesla $Tesla(TSLA.US$ shares are now down 38% from highs. I don't think $TSLAa top 10 Dow Jones and$SPX$SPYstock & the biggest EV name in EV ETFs will stay at these levels. 6 points;
1- I think end-of-quarter rebalancing will see TSLA shares pick up.
2- Sure the lithium price is down ~75% from its record highs (+11% on the week). That's not improving margins. There are much bigger issues at play.
3- I think Trump and Musk could somehow maybe prevent Chinese-branded EVs from gaining traction in the US. No idea how. It's dependent on Trump winning of course. But, right now.;
4-$TSLA's margins are being squeezed as the EV market is flooded. Price wars will step up.
5- This week alone; BYD, the BEV leader in China & globally, AGAIN cut costs for its flagship models.
1- I think end-of-quarter rebalancing will see TSLA shares pick up.
2- Sure the lithium price is down ~75% from its record highs (+11% on the week). That's not improving margins. There are much bigger issues at play.
3- I think Trump and Musk could somehow maybe prevent Chinese-branded EVs from gaining traction in the US. No idea how. It's dependent on Trump winning of course. But, right now.;
4-$TSLA's margins are being squeezed as the EV market is flooded. Price wars will step up.
5- This week alone; BYD, the BEV leader in China & globally, AGAIN cut costs for its flagship models.
6- In Europe, Audi and BMW now lead Tesla in sales. WATCH THIS SPACE. Right now traders are loving EV and Lithium names.
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