Markets Shares of Chinese automakers continue to slide after fears of price war and scrutiny from regulators Published Mon, May 26 20252:01 AM EDTUpdated Tue, May 27 20252:18 AM EDT Amala Balakrishner@in/amala-balakrishner@_amalabk Share Key Points Fears of a price war and increased scrutiny from regulators weighed on investors. Investors are turning cautious about stiffer competition and a potential price war in the sector. An analyst told CNBC that BYD shares are now overvalued. ____________________________________________ EV cars (including TSLA) is a sunset product. China is the #1 producer of cheap and good quality EV cars. Due to the very competitive market, EV cars will get cheaper and cheaper and cheaper.
i was hoping there are some discussion on battery energy storage business aspect. do not follow mainstream media and get carried away with what is front.
The pro /anti Tesla partisanship on this board is not unlike others. I've been a TSLA investor and trader since 2019, before Musk went to the dark side. I've also called for him to be fired as Tesla CEO for failing (and the BoD) to abide by their fiduciary responsibilities. That said, Recently Elon said that Tesla's future is FSD and bots. This can mean to say that nothing they've been doing to date justifies its present valuation or it can mean that, to double + its valuation, Tesla needs to win the FSD and bot races. I'm optimistic regarding FSD. Yes, it's long delayed and will likely take another 5 years (or 10) before it can justifiably be called FSD to the required level 5 standard, unless a learning breakthrough in tech speeds up its learning curve. Regardless, Tesla's lead will be very difficult to catch up to and Waymo is not the competition. The profit potential of a software driven application is gigantic. The bots are an entirely different proposition and one I fail to understand today. As with anything Tesla, no market research was done to evaluate the need. On the consumer side, I can't imagine more than a CT like demand for bots at home. As with any/all machines, the supply chain not only to build (it's there), but to supply/service/discard/dismantle/reuse is non existent today. Like with the CT, the least important issues will be amplified and mocked to death, and the first related injury will lead to government intervention. On the business side, I do not believe for a minute that organized labor will allow bots to replace humans without a fight to the death response. Tesla needs to sell these bots by the thousands to make a profit. Your mom and pops retailers might buy one for the business promotion but Musk really wants them operating by the thousands in manufacturing and there's the main issue... They are not designed to operate in manufacturing set ups, where machines repeat the same movements over and over for many years. I've always believed Musk is developing bots to travel to Mars. If/when the bots operate like humans (AI will lead to it), then bots will lead the way by the thousands in his spaceships. But no one is going to invest today on a 20 years project. Could/would bots be operated in warfare? There is a body of international legal literature that suggests we agreed not to, but if any Trump can swipe away long-standing international agreements... So, TSLA? At 400 I'll sell half my investment stake, at 500 I'll sell the other half. My trades are within the 200 to 350 bracket. Good luck
On that front you see lots of media about batteries that go super long distances on a single charge and new tech/materials. What they often withhold is the fact that nearly all of these new setups can only be charged a few times and then the battery becomes useless. There are new things, but in practical applications they are just slow to develop. TSLA's biggest issue today is the political meddling you mentioned. Aside from a general slowdown worldwide, Elon has pissed off the main folks that buy his cars in the US - Democrats. Hybrids are being further developed in F1 and are gaining ground. If Elon wants to keep TSLA relevant, he made need to started putting gas engines in them and a smaller electric motor.
All that is true but eventually only a few will succeed. Remember when there were dozens of companies making PC’s?
Beside which he doesn't know what he's talking about, batteries have a 10-20 year lifespan in vehicles. Storage may be longer.