The Rising Influence of Rising Affluence

[n4807g]

Going into the end of 2023 the news was decidedly negative on EV's across the board. Couldn't argue with the situation because sales growth has stalled and the future prospects are uncertain. But the news has begun to change on the commitment and the future of EV's. Still a problem of current sales but governments and CEO's are still saying EV's will be a significant percentage of sales by 2030. One of the reasons I feel confident is the growing chorus of concerned voices that China will dominate the space unless the EU and USA step up. I don't think it's a coincidence that BYD has said they aren't interested in selling cars directly into the US market, their establishing sales and manufacturing in countries that are behind in EV adoption that need BYD's expertise to establish a cost competitive industry. EV cost constraints are a world wide issue, BYD has already announced a collection of low priced cars available today. they're going to leverage their advantage and build their brand across the globe regardless of the USA and EU stance, and it will force the USA and EU to double the effort or watch China, Japan and S. Korea dominate the EV space. My opinion; this is a pause in EV adoption and the next phase is the move into lower priced volume sales and BYD is probably the best positioned to drive that segment. If you rank management effectiveness in navigating the change from ICE to EV I'd place BYD #1, Toyota #2 and Tesla #3. #1 and #2 because they saw the value of hybrids and #3 for 1st mover in EV's, but Tesla better hurry up with that low priced EV or even they will fall behind. The rest of the pack of legacy manufacturers have to really get moving or they'll look more like the AMC of the EV space.

Italy has been trying to woo Tesla-beating BYD as the second auto giant on its shores
https://fortune.com/europe/2024/02/26/italy-approaches-byd-manufacture-electric-vehicles/

This headline is becoming more commonplace as countries look at who is able to help develop a cost effective industry today

BYD Shortlisted in the Top Three for the 2024 World Car Awards
https://finance.yahoo.com/news/byd-shortlisted-top-three-2024-152000303.html

BYD EV sales grew nearly 50% in January as exports reached a new high
https://electrek.co/2024/02/01/byd-ev-sales-up-48-january-exports-new-high/

Looks to me like BYD is pulling away and their MC is only $78B, if you look to the future BYD is beginning to look unbeatable.