IMO it's good to associate with the Chinese, they want the job done and they get the job done FAST, that will put some pressure on the company to perform which is good to shareholders in general.
Of course, they don't care about the shareholders but their own goal, so when they pull out of a deal, you will get a surprise, don't trust them yes because they are all for themselves, but who isn't tbh. You just have to understand the game to know when is a good time to take profit, to me right now, it isn't. The Chinese EV market will boom in the coming years and so is the global EV market, it is the direction we are heading towards, every major car brand have their own version of EV nowdays and you don't have to be an expert to see the trend. Electric cars are also getting better in range and there is currently no better replacement for Lithium batteries when you factor in price and performance.
To me the biggest risk is when they find something better than lithium-ion battery as a replacement and it will catch a lot of people by surprise when the biggest EV company decides to make the switch, yes, Telsa (they are known for doing ridiculous things like Apple did with the iPhone, lot of noise initially to oppose it but the market followed in the end), hydrogen fuel cells right now won't make it because it's so expensive and it won't be a total surprise, I believe it won't happen in the short term, probably will happen when 10%+ of the vehicles on the road are electric and it will take a long time to reach that goal. But the final switch will probably be very swift once that happens so be prepared when it happens.
If you are investing long term, I think it's good to read about lithium ion battery history or battery history in general, it took around 20 years from first attempt of lithium-ion battery in the 70s to first commercialization in the 90s, and the rest is history.
BTW, The Chinese side will officially start working next Monday but from what I've heard, it is more likely to be 10th of Feb for most companies because of the risk of the virus (2 weeks period). So expect a shitty week next week and then followed by a slow recovery the week after.
AVZ Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
