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Quartz: Chinese electric car maker BYD reports 632% jump in profits as Tesla falters

Discussion in 'China & Far East' started by Dungeness, Apr 29, 2019.

  1. Dungeness

    Dungeness SENIOR MEMBER

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    Chinese electric car maker BYD reports 632% jump in profits as Tesla falters
    By Ephrat Livni4 hours ago


    Electric car maker BYD is speeding ahead of Tesla with respect to profitability. The Chinese company today (April 28) reported a 632% jump in profits in the first quarter from a year ago. Days earlier, the US car company led by Elon Musk announced one of its worst quarters ever.

    BYD is the world’s largest electric vehicle maker (membership), though its brand isn’t widely recognized outside of China. It started out as a battery maker about 25 years ago and transitioned into the car business a little more than a decade ago, making both conventional fossil fuel-powered cars and “new energy vehicles.” The success of its first mass-produced hybrid caught the attention of legendary US investor Warren Buffett, who in 2008 bought a 10% stake in BYD for $230 million. That investment seems to be really paying off right now.

    There is increased demand for electric vehicles in China, BYD says, and it expects continued growth. The company’s profits rose to about 750 million yuan ($111 million) in the first quarter, compared to 102 million yuan a year ago. BYD sold 117,578 new energy vehicles in the quarter, up 5% from a year ago. The company is now selling more electric vehicles than conventional cars.

    “New energy vehicles are expected to continue to sell well in the second quarter, and new energy vehicle sales and revenues continue to maintain strong growth,” the company’s latest stock exchange filing reports. According to Reuters, BYD expects to sell 655,000 cars in 2019, a substantial portion of the 1.6 million electric vehicle total that China’s Association of Automobile Manufacturers predicts will be sold this year.

    In stark contrast to this positive news for BYD, its US rival Tesla lost nearly $700 million in the first quarter. It attributed over $120 million in losses to a higher return rate than expected after it raised prices for the Model S and Model X. In its quarterly earnings call, Tesla chief financial officer Zachary Kirkhorn described the first quarter as “one of the most complicated… in the history of the company.”

    Beyond its faltering quarterly profits, Tesla also had some bad news in China to contend with recently. Last week, a video that circulated widely on Chinese social media showed a parked Tesla Model S abruptly caching fire in Shanghai, where the company plans to build its first overseas factory. Earlier in the month, a parked Tesla in the US also caught fire.

    The two electric vehicle makers do have something in common, however. Tesla and BYD both plan to expand into each other’s markets. China is the world’s largest car market, and the US comes second.

    China's BYD reports 632% jump in profits as rival Tesla falters — Quartz
     
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  2. Dungeness

    Dungeness SENIOR MEMBER

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  3. onebyone

    onebyone SENIOR MEMBER

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    fake news
     
  4. Hamartia Antidote

    Hamartia Antidote ELITE MEMBER

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  5. Dungeness

    Dungeness SENIOR MEMBER

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  6. LeGenD

    LeGenD ELITE MEMBER

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    A Tesla Model S car catching fire in the parking area might be due to faulty batteries inside, or due to lack of safety retrofit in this particular vehicle. Some explanation in this link: https://www.forbes.com/sites/billro...-fire-caught-on-camera-in-china/#60433cf17bd9

    Tesla + Chinese authorities are investigating the aforementioned incident. Mischief cannot be ruled out either.

    Now this:

    "Elon Musk can design special products that capture people's hearts, by contrast, the electric cars designed in China are boring," says Beijing's auto-analyst Jia Xinguang. "Chinese electric cars are not as fun."

    Whoops

    No offense to Chinese efforts of-course; BYD's evolution deserve appreciation as well.

    ---

    Following was the reason for drop in sales:

    "The electric carmaker, which imports all the cars it sells in China, said in October that tariff hikes on auto imports were hammering its sales there. In July, Beijing raised tariffs on imports of U.S. autos to 40 percent amid a worsening trade standoff with the United States."

    Nothing to do with automaker's reputation.

    Sales in China still hot: https://cleantechnica.com/2019/04/0...-while-gigafactory-3-construction-going-24-7/

    But Tesla cannot compete with Chinese automakers in sales without a manufacturing base of its own in China; exports to China will not cut it.

    Tesla's manufacturing base in China is STILL WORK IN PROGRESS: https://www.teslarati.com/tesla-gigafactory-3-china-record-construction/

    - expected to be ready by September of this year. Let us see.
     
    Last edited: Apr 29, 2019
  7. Dungeness

    Dungeness SENIOR MEMBER

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