The Chinese electric vehicle market is heating up, with China's smartphone giant $XIAOMI-W(01810)$ joining the fray with the introduction of its first EV SU7 and its ambition to become one of the world's top 5 automakers. Xiaomi's jumping onto the EV bandwagon is sure to give other aspiring Tesla-wannabes a hard run for their monies.
Chery is also slashing prices across its NEV models, as it prepares for another brutal year of price wars among the EV makers for larger slices of the domestic EV market pie. These are not boding well for the Chinese EV startup trio 9866, 9868 and 2015, $NIO-SW(09866)$ , $XPENG-W(09868)$ and $LI AUTO-W(02015)$ as shrinking profit margins sink all boats. I believe they will need to quickly expand overseas to diversify away from the increasingly saturated local market and growingly intense price competition.
On the other hand, I believe that the EV incumbents BYD and $Tesla Motors(TSLA)$ which have been distant ahead of the EV pack with their first mover advantages, technology leaderships and market dominance are going to defend their market shares aggressively and not let up without a fight. With their economies of scale in EV manufacturing and financial muscles, BYD and Tesla should remain highly competitive in the EV industry.
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