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I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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(This post was last modified: 09-06-2025, 10:07 AM by
sgbuffett.)
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Auto is a cyclical business.
In the early part of EV it was a growth industry because the %share was tiny so there was continuous growth.
Thjs growth encourage more and more production expansion. For a while it looks loke never ending growth. Until it hits saturation
Those investing in growth should always be mindful of the limits.
So far only software and platform companies have pushed these limits further than we imagined. Others like Nike, Starbucks, McDonalds all look like they hit model limifs.
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Geely boss said this after China gov signaled they will intervene in the EV industry if the brutal price war continues in the Chinese domestic competition, which exceeds 60% of the global market. Now you understand why the West are so afraid of the Chinese ?
https://www.reuters.com/markets/emerging...025-05-31/
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(09-06-2025, 10:12 AM)sgbuffett Wrote: Auto is a cyclical business.
In the early part of EV it was a growth industry because the %share was tiny so there was continuous growth.
Thjs growth encourage more and more production expansion. For a while it looks loke never ending growth. Until it hits saturation
Those investing in growth should always be mindful of the limits.
So far only software and platform companies have pushed these limits further than we imagined. Others like Nike, Starbucks, McDonalds all look like they hit model limifs.
Each industry has its own cycle of peak and trough, which are usually short terms from months to a few years mainly driven by supply and demand.
However, the EV industry Is a different animal.
Electrification of affordable vehicle marks a revolution, not a cyclical moment, that challenges legacy players who had been in control for over 100 years...
So when the Chinese begins to lead in new industries like the Green Revolutions in last 2 decades from solar panel, to batteries to EV, not everyone wake up from their 100 years old slumber until it is too late.
You've got friendly neighbours? Grow Up! - 李光耀 2013
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They r killing each other. BYD, Geely and others r fighting with low current ratios in their financial statements. Let them fight till they go broke; otherwise, they will not stop.
https://www.businesstimes.com.sg/compani...sales-jump
Omni likes my post and he always bump it up for me. Thank u Omni.
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BYD profit margin is only 5.7%. A price cut of 34% is definitely unsustainable. Some will go broke if it is not BYD.
https://www.businesstimes.com.sg/compani...es-much-34
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(This post was last modified: 09-06-2025, 01:16 PM by
revealer.)
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(09-06-2025, 12:52 PM)revealer Wrote: They r killing each other. BYD, Geely and others r fighting with low current ratios in their financial statements. Let them fight till they go broke; otherwise, they will not stop.
https://www.businesstimes.com.sg/compani...sales-jump
Not only that, Chinese EV are also "killing" famous non-Chinese brand too, like Telsa, which is forced to cut price even in international market because of Chinese competition.
https://www.straitstimes.com/asia/east-a...hey-missed
https://www.straitstimes.com/business/te...-singapore
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(09-06-2025, 01:05 PM)revealer Wrote: BYD annual profit margin is only 5.7%. A price cut of 34% is definitely unsustainable. Some will go broke if it is not BYD.
https://www.businesstimes.com.sg/compani...es-much-34
That explains why Geely boss is warning the cut-throat competition can be dangerous for those who is unable to compete.
Else why Telsa market share keep falling thanks to Chinese EV brand which Elon musk used to laugh at ?
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In a way telling berak modi don't dream of making EV loh
https://media.tenor.com/CFVIVCpjT9MAAAAM...-laugh.gif
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how come SG no price war?
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