[Blasterlord2]

I've a sense that it is facing some problems.

It's asking its suppliers to lower their prices by 10%. Although it says this is negotiable but suppliers know better than to do otherwise.

https://finance.yahoo.com/news/leaked-by...23460.html

[winbig]

Asking suppliers to cut prices every year is a norm among big companies. Apple will also do the same every year.

[RiseofAsia]

It is a war of attrition.
They already going to conquer the world market. Now their opponents are their own competitors from China.

[sgbuffett]

EV is a very competitive and crowded space.

With traditional car giants coming into the area there will be even more supply and price war.

[sclim]

byd has profit margin to reduce price. not for many other china ev maker. already loose money.
reduce price lost even more per ev.
tesla try to hold on to their positions by doing that.
xiaomi entry into ev is a real challenger to other manufacturers.

[BigNLong]

EV is a very competitive and crowded space.

With traditional car giants coming into the area there will be even more supply and price war.

Not true

there is no competition outside of china . only tarifs

[Blasterlord2]

It is a war of attrition.
They already going to conquer the world market. Now their opponents are their own competitors from China.

I tend to agree with you. I think it's not good for the whole EV ecosystem.

China market is so competitive that manufacturers are now competing on very low price. It puts suppliers into a dilemma. If they dun cut the price, they will lose their business with BYD which could be their biggest customer. If they lower their price, then it's likely that corners have to be cut somewhere because margin is already very low. E.g. wages may be cut in a deteriorating business situation, or that some cheaper components have to be sourced.

Many Chinese EV companies will soon be going under.

[teaserteam]

Not true

there is no competition outside of china . only tarifs

The overseas sale is only 14% of local.  The competition is in the local.  The financial results of BYD has been deteriorating as compared to the industry as shown in this table.  In many areas, the results show poor performances;  for example,  the EPS and sales growth is well below the industry,  plus it has a poorer capital ratio with poor efficiencies in many areas as highlighted in red.  The competition has eaten into its financial results and the price is high.  if not careful,  they can be in financial trouble soon.

[revealer]

No wonder they wanted suppliers to cut their price. But the suppliers r not stupid. BYD is losing in sales growth compared to last year. Their EPS growth has suffered. The Receivable is too low compared the others, meaning they might hv difficulties collecting their payment or over extended their credits to gain market share.

[aiptasia]

I tend to agree with you. I think it's not good for the whole EV ecosystem.

China market is so competitive that manufacturers are now competing on very low price. It puts suppliers into a dilemma. If they dun cut the price, they will lose their business with BYD which could be their biggest customer. If they lower their price, then it's likely that corners have to be cut somewhere because margin is already very low. E.g. wages may be cut in a deteriorating business situation, or that some cheaper components have to be sourced.

Many Chinese EV companies will soon be going under.

Which ironically is what western capitalists always tout yet China does hyper competition like no one else. And it's for every industry, not just EVs.

While the US still props up dying giants like Intel and Boeing.

[Blasterlord2]

Which ironically is what western capitalists always tout yet China does hyper competition like no one else. And it's for every industry, not just EVs.

While the US still props up dying giants like Intel and Boeing.

Yup, China is super duper competitive, to the extent that every seller is trying to undercut each other to earn that meagre amount.

[WhatDoYouThink!]

Chinese are like xiao qiang, never say die. Dun worry too much for them

For 5000 yrs already you still dun believe?

[victortan]

Always hear good news. But stock price remain hardly move.

Maybe can buy a bit too long. But not so much as ur money may stick for quite a long time.

I like this coy if the statistic is true.