Globally, $Tesla Motors(TSLA)$ leads all others, selling 936,000 units in 2021 (giving the company a market share of ~14%). Close behind was the Volkswagen Group (11%), BYD (9%), GM (7.6%) etc.
Although China has the biggest market for EVs at 34%, you can see that most of the China's EV companies are not making significant progress in their car deliveries. Taking Nio as an example, since hitting the peak of 12.9k car deliveries in Jun 2022, the number has been decreasing and mostly remained stagnant at around 10k.
For Q3 22, Nio delivered
Jul22 - 10,052 cars
Aug22 - 10,677 cars
Sep22 - 10,878 cars
Although it's the best quarter in terms of car deliveries so far, one should note that it's clearly a huge challenge to scale up the car deliveries exponentially. More new factories are needed to scale up the production. Furthermore, the competition in the EV market has intensified as numerous traditional car markers (Mercedes-Benz, BMW etc) are also investing and building more EV units. Hence, I think the downside will be more for China EV companies (such as XPeng, Nio and Li Auto). The price of raw material for EV battery, lithium, has been soaring to new highs! The price war with Telsa would also lead to lower profit margin! With increasing interest rate hikes, I doubt people would be splashing more money to buy new cars!!
Furthermore, Elon Musk has been cashing out from his Tesla positions at $200+ while Warren Buffett has trimmed his stake in $BYD Co., Ltd.(BYDDF)$ !! What do you think? Let me know your thoughts!!
@Daily_Discussion @TigerStars @CaptainTiger @MillionaireTiger
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