EVs in China growing healthily? Businesses that have to resort...

EVs in China growing healthily?

Businesses that have to resort to price slashing is symptomatic of an unhealthy trend.

There's so much price cutting they can do. When they stop, Chinese EV growth will plummet!

They have to push volume to absorb fixed costs and if it wasn't for Govt assistance, they wouldn't be able to continue to push it.


NEWS: BYD became cash flow negative again in Q1 2024 losing $2,219 million in capital. Unlike Tesla's capital expenditure (capex), BYD's capex is down year-on-year and BYD wasn't spending $1.0 billion on a Nvidia compute cluster. Hence, BYD's Q1 cash burn is objectively much worse than Tesla's

https://x.com/alojoh/status/1785623469696196653

Since capital expenditures remain over $1.0 billion below Q1 2023 capital expenditures, BYD's operating cash burn has worsened year-on-year.

https://x.com/alojoh/status/1785623473374515610

Operating cash flow is down a shocking 86% quarter-on-quarter and a still staggering 29% year-on-year.

https://x.com/alojoh/status/1785623477099114650

Apparently, despite BYD's significant 2023 growth, growing from a 2.1M vehicle producer to a 3.1M vehicle produce, BYD failed to generate capital efficiencies

https://x.com/alojoh/status/1785623480664220133