• filister@lemmy.world
    link
    fedilink
    English
    arrow-up
    51
    arrow-down
    8
    ·
    10 months ago

    Can’t you also name this brand. The majority of the people here know it anyway.

    Funnily enough the TSLA stock is 800 billion and the BYD stock is 75 billion.

    • Buffalox@lemmy.world
      link
      fedilink
      English
      arrow-up
      83
      arrow-down
      4
      ·
      edit-2
      10 months ago

      Funnily enough the TSLA stock is 800 billion and the BYD stock is 75 billion.

      That’s because Tesla is extremely overvalued, because Musk is a con man, who promises Tesla will lead AI for fully autonomous driving, and basically promises that when that happens, it’s nearly infinite money. In reality they are currently #4 at best in AI for self driving.

      I’m guessing BYD is valued more by criteria similar to VW and Toyota.

      PS: Yes I know half of infinite is still infinite. But I hope you all understand what I mean. 😋

        • Buffalox@lemmy.world
          link
          fedilink
          English
          arrow-up
          8
          ·
          10 months ago

          Mercedes, Waymo and GM are all ahead for sure, despite having a setback recently in their testing. But there are others that are likely ahead too, like BYD, Nissan, Nvidia and MobilEye.
          My guess is that Tesla probably ranks 6th currently, but they for sure is no higher than 4th.

          PS I don’t know why you got negative feedback? It’s a fair question.

      • NotMyOldRedditName@lemmy.world
        link
        fedilink
        English
        arrow-up
        5
        arrow-down
        13
        ·
        edit-2
        10 months ago

        Until this year, most of the analysts weren’t really including FSD in any of their projections. They were projecting Tesla maintaining the really high margins instead of high margins. Some are adding AI in now.

        When the really high margins became high margins, things changed pretty rapidly.

        Of course retail investors amd what actually happens is different, and it’s hard to deny there must be some impact beyond what analysts are saying, but I don’t think it’s as much FSD as people think it is.

        Edit: analysts weren’t even including the energy business either, but thats about to change too.

        • Buffalox@lemmy.world
          link
          fedilink
          English
          arrow-up
          13
          arrow-down
          1
          ·
          10 months ago

          Without value as an AI company too, there is no sensible way Tesla can be valued as high as it is. Tesla should basically surpass the 10 leading car makers combined, if it should make sense by merely making cars as we know it today.

          • NotMyOldRedditName@lemmy.world
            link
            fedilink
            English
            arrow-up
            9
            arrow-down
            3
            ·
            edit-2
            10 months ago

            Tesla was bringing in insane margins and profits, I don’t think people necessarily appreciate how much it was.

            In 2022, Tesla earned more profit (12.6b) than Ford AND GM (10.6 combined) on substantially less vehicles. Most of the legacy manufactures were also looking to suffer for an extended period of time, bringing in the question of their long term profitability, while Tesla showed growth and profits. Tesla was also on track to beat Toyota in 2023 or 2024. (Edit: It might have been VW not Toyota)

            People were looking at their growth trajectory and what the company guidance was and seeing those margins were, and while the PE would be high 4-5 years down the road looking at it like this, it wasn’t going to be entirely crazy either.

            When a company is growing so fast, people give it a higher multiple, until it’s not.

            Then the margins dropped, Elon did his batshit insane stuff with Twitter, and some combination of that leaves us where we are today.

            Right now, they really need to make their Gen 3 25k vehicle as that’s much more priced in than FSD IMO. Tesla has been guiding 50% CAGR for years now, and if Gen 3 comes out and it doesn’t start that trend again with their standard good margins, they’re going to get brutalized. If they keeping delaying it much longer, I think they’re going to get really hurt as well.

            The current price is really just a waiting period to see what happens with Gen 3 and the energy business.

            I expect to see downgrades in 2024 because Tesla won’t meet the 50% CAGR target that people take to mean 50% each year.

            By 2025 I think the big talking point will be their booming energy business as people start to realize it might actually be bigger than the car business for real.

            Edit: it’s also worth pointing out, margins came down because interest rates went up. A car payment at these lower prices is around the same as it was when prices were higher, it’s just that money is going to the banks as interest instead of the car manufacturers. That, and Elon fucking the brand over with his twitter nonsense.

            • Buffalox@lemmy.world
              link
              fedilink
              English
              arrow-up
              5
              arrow-down
              1
              ·
              edit-2
              10 months ago

              I admit what Tesla has done is very impressive, and they actually ARE as big as the rest of top 10 combined on pure electric cars here (Denmark). But the competition has arrived, and it is very unlikely that Tesla can maintain such a huge market share, and the margins will probably never come close again to what they were, again because there is more competition now.

              In the energy market, Tesla presented solar roof tiles which went away again, and they had the power wall which I’m not sure is very popular anymore. Here nobody uses that, when we bought our solar solution with battery, Tesla didn’t even appear in internet searches as an option. Tesla has done some energy things for the past 15 years, including selling a battery park for mass storage in Australia, but it seems none of the projects are very successful, and Tesla is far from a market leader in any aspect of energy AFAIK.

              Elon Musk himself has stated that without AI, Tesla would be almost worthless.
              https://www.independent.co.uk/tech/elon-musk-tesla-self-driving-b2102597.html

              I’m guessing by almost worthless, he means it would be valued as other car makers, and that would decrease the value to a fraction of what it is today. Unfortunately for Musk, Tesla AI is in fact basically worthless without the false promises. Because Tesla is at best #4, and in high tech generally, being #4 means your margins have to be very low.

              • NotMyOldRedditName@lemmy.world
                link
                fedilink
                English
                arrow-up
                3
                ·
                10 months ago

                Just double replying here in case you did read my other reply and just didn’t reply. I made a big oopsie with the energy profit by mixing up lines with service and other. The profit was 381 million, not almost a billion. My bad.

              • NotMyOldRedditName@lemmy.world
                link
                fedilink
                English
                arrow-up
                2
                ·
                edit-2
                10 months ago

                The energy business, primarily commercial, has actually been doing really well. It was stalled during covid in favor of vehicles, but it’s ramping now. They have done much more than just Australia, and they’ve actually been very successful. You just don’t hear about it the same as it’s less flashy than cars or AI. They also sell AI driven software to help optimize power grids power arbitrage, which is successful recurring recenue software tack on as well.

                Their new facility that’s ramping right now will put out 40gwh a year which is more batteries than some legacy auto manufacturers are using, and they are building a second in China that’s going to start producing in 2024. That’s over a million cars worth of batteries being sold at commercial margins. As the business ramps its going to be as or more profitable than cars excluding a future where FSD is successful. (edit: just for reference, they deployed about 66,000 60kwh cars worth of batteries in Q3)

                They’re also getting into the power business in Texas and I’d expect to see that to expand, and their virtual power plant product is also growing and will be a big thing in the future. I’m actually excited about VPP from any and all providers as it’s really going to add security to the power grid while helping out the home owners. A Vermont power company wants to get a home battery in 100% of their customers homes over the next few years.

                So keep an eye on all this if it interests you at all, it’s going to be big, and as I said, people are going to start accounting for it. They made almost a billion profit on that on Q3 (edit: I’m an idiot and can’t line items up. It was 381 million profit at about 40% scaled. I mixed up a line with service and other. The point still stands though, you can’t ignore almost 400 million in profit with the rapid growth its showing)

                As for the AI, analysts really weren’t accounting for it and they weren’t accounting for energy either. You can say they are all crazy for having given tesla those valuations without it if you want, but im just telling you what was really happening. A few like Cathie Woods were, but most weren’t.

                And like my edit about car payments. I wouldn’t ever expect the same margins on the 3/y again, but do expect margins and prices to go up as interest rates come down. People buy cars based off the car payment, and those are the same today as when margins were higher and Tesla still sold around 1.8 million vehicles this year at those same payments. If payments become cheaper because interest rates come down, prices will go up somewhat at all manufacturers as there will be more demand for cheaper payments. Those other manufacturers are suffering more than Tesla due to the interest rates and they desperately need them to go down to help with their profitability. The longer this drags on, the worse they’re going to be as ICE restriction start coming into play in various countries.

                Also, the competition is coming and teslas market share going down is old and tiring to hear. Tesla isn’t competing against other EV makers, their competing against ICE sales. Their total market share is increasing. The story is always going to be their EV market share is decreasing because if you are at 100% and someone sells 1 car, you’re decreasing. If their total market share is decreasing in a region, then that might be a real problem.

                The real competition (edit: within the EV space) is going to be the Chinese EV makers. That I feel is legit. But Ford, GM, Stellantis, Toyota etc, it’s the same story and they’re still struggling and even cutting back plans. They talk a big talk, but the jury is still out on that one.

                I don’t think Tesla AI is worthless without FSD either, but clearly dramatically less without. They do use AI for power as I mentioned, and they’ve diversified their FSD computer into the bot, which is a long shot, but it puts their eggs in 2 baskets instead of 1 which could prevent a complete disaster if FSD fails. The bot is easier to solve than FSD so it’s not out of the question.___

                • Buffalox@lemmy.world
                  link
                  fedilink
                  English
                  arrow-up
                  2
                  ·
                  10 months ago

                  Thank you, that’s a very interesting and thorough response. 👍 From what you write, it all sounds very impressive, question is then why Musk would call Tesla basically worthless without AI?

                  Also, the competition is coming and teslas market share going down is old and tiring to hear.

                  Well I wrote the competition has already arrived, and yes Tesla may increase market share total, because the total EV market is increasing market share. What I meant is that they can’t sustain their current market share and margins in the EV market. So they will not become as big as the rest of top 10 combined. Tesla may be able to hold their market share for the total market, maybe even increase it a bit. But I strongly suspect even that will go down when the competition is nearer completing the transition period, and compete at full strength. Tesla had a 10 year head start, but in 10 years that won’t matter as much.

                  The real competition is going to be the Chinese EV makers.

                  The competition from China is already real, and Chinese cars dominate China with BYD having 7 out of 10 top selling cars in China and Tesla only 2, and China is now the biggest market in the world. China is expanding quickly to other markets. We have many Chinese brands in Europe now, that all arrived very recently. But European and American makers like for instance VW and Ford, are also improving rapidly. Then of course there is Hyundai/KIA which is the world 3rd largest maker, that makes some very good EV offerings here.
                  One of the reasons I think Tesla may lose in the long run, is that they are a very long time about making new models. Maybe it’s just Musk who promises results unrealistically soon. But the delays are sometimes up to 5 years delivering what he claims they can do now!

        • mosiacmango@lemm.ee
          link
          fedilink
          English
          arrow-up
          1
          ·
          edit-2
          10 months ago

          Tesla stock goes up because it goes up. Thats about it.

          The company had high margins and a commanding lead for a desirable auto segment, but at this point its losing ground. The stock goes up because it increased 7x during covid because of lies and hype, so its a Bitcoin/GameStop style meme engine now. It dips and people buy buy buy. It has very little to do with company fundamentals.

          • gila@lemm.ee
            link
            fedilink
            English
            arrow-up
            2
            ·
            edit-2
            10 months ago

            They print profits out of thin air by earning carbon credits through ZEV program and selling them to other manufacturers. It was 30% of their profits this year and enables competitors to stave off actually making any EVs, leaving Tesla as the only game in town in the US

    • Buffalox@lemmy.world
      link
      fedilink
      English
      arrow-up
      11
      arrow-down
      1
      ·
      edit-2
      10 months ago

      Can’t you also name this brand. The majority of the people here know it anyway.

      It’s literally the original headline from the article, which is considered good posting ethics. Why would you want posters to editorialize headlines?

    • sugar_in_your_tea@sh.itjust.works
      link
      fedilink
      English
      arrow-up
      7
      ·
      10 months ago

      How would that majority here know it? I assume most here aren’t Chinese, and these cars are pretty new to most markets outside of China.

      I personally had never heard of them, so thanks for mentioning the ticker so I could look it up.

        • sugar_in_your_tea@sh.itjust.works
          link
          fedilink
          English
          arrow-up
          1
          ·
          10 months ago

          Huh, looking it up it looks like they’re in a number of countries. So they’re not quite big enough to make my local news, but big enough to be distributed throughout a number of countries.

      • NotMyOldRedditName@lemmy.world
        link
        fedilink
        English
        arrow-up
        4
        arrow-down
        1
        ·
        edit-2
        10 months ago

        Teslas sept 2023 q3 operating margin was 11.18% and peaked at 16 before all the cuts. This is while ramping 2 factories.

        BYDs latest seems to be 5.33% and peaked around 9.5 in 2018 and has been under 8 since. I don’t know what BYDs factory ramping situation is.

        Ford for the past couple years has hovered a little above and below 4. Was worse further back.

  • jaschen@lemmynsfw.com
    link
    fedilink
    English
    arrow-up
    40
    arrow-down
    6
    ·
    10 months ago

    Also keep in mind that the (fuck) CCP intentionally heavily subsidized in an effort to dump on all its competitors in different countries.

    Cars are regularly sold at half the cost just to kill all competition. You’re going to eventually sell more cars than your competitor.

    • st0v@lemmy.zip
      link
      fedilink
      English
      arrow-up
      34
      arrow-down
      2
      ·
      10 months ago

      There’s a bit more to it than that. But yes EVs are subsidized in China.

      I worked in a business where we had one product that was useful for automakers but especially useful for EVs. About 8 years ago the EVs in China were mostly cheap shitty BYDs.

      Seemingly out of nowhere, the government changed a bunch of rules and regulations for new cars. Within a month design teams were being established at every major automaker in China focusing on EVs. It was a great year for us.

      Key EV components, especially the materials to make batteries, started to come down in price.

      Then the green plates started turning up. Every city has its own rules for car registration, some places like Shanghai, would auction new number plates each month resulting in a low supply and high demand. It was possible to buy a car cheaper than the number plate. Then if you register an EV you can get a green plate for almost nothing.

      About 3 years ago the cities started requiring new taxis and busses to be EV. Places like shenzhen just converted everything to EV. Released licenses for training and testing self driving.

      Charge stations started popping up everywhere. There’s no way a shopping mall or new residential development could avoid having at least a large section for charging. My own home, converted an entire floor to charging parking stations in the underground car park.

      Finally tesla set up Shanghai giga factory. I have no idea how they managed to make that deal but not long after they started shipping model 3s domestically they slashed the prices down to cheaper than a niceish BYD.

      If you go to Shenzhen today about a third of cars are EV and you will see a dozen brands you’ve never heard of before (some are terrible cars, but most are reasonable quality and a handful are bullshit luxury)

      As in tradition in China, the government will now let them go into a price war to push the manufacturers to find cheaper ways to make them. Many will go bust or give up.

      • maynarkh@feddit.nl
        link
        fedilink
        English
        arrow-up
        13
        arrow-down
        1
        ·
        10 months ago

        As in tradition in China, the government will now let them go into a price war to push the manufacturers to find cheaper ways to make them. Many will go bust or give up.

        Isn’t that how a market economy is supposed to work, I mean normal textbook style? That’s how capitalism was sold to me in my econ classes.

        • nxdefiant@startrek.website
          link
          fedilink
          English
          arrow-up
          5
          ·
          edit-2
          10 months ago

          Sure, but what op described sounds like the equivalent of breaking a pool cue in half and telling the Chinese EV market there’s only room for one manufacturer on the crew.

          It’s a massive waste of resources to have everyone race to the bottom like that.

          • maynarkh@feddit.nl
            link
            fedilink
            English
            arrow-up
            1
            ·
            10 months ago

            I still don’t get it. Isn’t the point of capitalism and a market economy to have a constant “race to the bottom”, eg. a race to provide a better service for a lower price on the supply side? I mean, interfering with that would be picking winners and losers, wouldn’t it?

            • nxdefiant@startrek.website
              link
              fedilink
              English
              arrow-up
              1
              ·
              edit-2
              10 months ago

              Usually governments regulate their markets to prevent humans from going full human and burning everything as a sacrifice to the gods of greed. This is why we have agencies that regulate food safety, engineering standards, nuclear materials and chemical disposal.

              The phrase “regulations are written in blood” reminds us that a race to the bottom will result in massive problems, and that regulation is an excellent idea.

              • maynarkh@feddit.nl
                link
                fedilink
                English
                arrow-up
                1
                ·
                10 months ago

                Common sense regulations like safety and such make sense, but isn’t that just part of the “race to the bottom”? I mean, if a regulation is well-written, it either affects all participants equally, or affects larger market participants more to enforce a balanced market with many competitors and healthy competition.

                I could see it might be something other than described, or I might not be getting some implication here, but what is described here sounds like a “race to the bottom” with regard to profit margins, and that is how a market economy should work, at least according to my very basic econ studies.

                The same exact product offering should have decreasing profit margins due to competition, which companies should compensate for with innovation, but what happens very often is that market distortions are introduced by either the government or big market players to heighten profit margins artificially.

                I’m reading this sentence as “profits go down drastically as competition sets in”. That doesn’t preclude regulation.

                Thanks for entertaining my questions, I am really trying to understand the point here.

      • jaschen@lemmynsfw.com
        link
        fedilink
        English
        arrow-up
        2
        arrow-down
        2
        ·
        10 months ago

        That’s fantastic that the CCP is creating the infrastructure to switch over to EV. It STILL doesn’t change the fact that they are intentionally dumping on the competition.

        Also requiring the public to switch to EVs non organically has repercussions as well. https://www.bloomberg.com/features/2023-china-ev-graveyards/

        The company you work for saw subsidized money for more e-waste and what the (fuck)CCP did actually increase greenhouse gases.

        Other notable CCP fuckups are…

        1 child policies Covid lockdowns And my personal favorite: The Four Pest Campaign (which led to one of the biggest famine) https://youtu.be/ojOmUWLDG18?si=1OXqD3bXpWVI5RI2

  • Adanisi@lemmy.zip
    link
    fedilink
    English
    arrow-up
    18
    ·
    10 months ago

    Honestly? Good.

    Maybe this will actually push EVs to be the most common vehicle type.

  • NotMyOldRedditName@lemmy.world
    link
    fedilink
    English
    arrow-up
    15
    arrow-down
    1
    ·
    edit-2
    10 months ago

    Pay wall, but AFAIK they aren’t past Tesla yet, all these comparisons include PHEV.

    That said, it’s believed they may pass Tesla in 2024 for pure EVs

    • ChicoSuave@lemmy.world
      link
      fedilink
      English
      arrow-up
      10
      arrow-down
      1
      ·
      10 months ago

      This is something to keep in mind because he has kept the same car designs for a decade. BYD has continually updated their hardware and designs. Musk isn’t leading Tesla; he’s at the helm while it coasts along, losing the momentum needed to move into the future.

      • phoneymouse@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        arrow-down
        3
        ·
        10 months ago

        I want to see battery ranges of 400-450 miles for $25-30,000 before I’ll consider it. I have a PHEV and the range is inflated. It gets 2/3rds of what it claims. To get what it claims, I’d need to do 20 miles an hour everywhere. That’s obviously not happening. Tesla also has range issues and gets much less than claimed… to the point where they got in trouble for it.

      • jean farouche@mastodonapp.uk
        link
        fedilink
        arrow-up
        3
        arrow-down
        4
        ·
        10 months ago

        @Kbobabob The economy that drives the world? Later this century the US will be driving Geely cars and shooting guns made of Bao Shan steel. Then, with the world economy in it’s pocket , the PLA will start exporting Communism to those countries defaulting in their debt. Chinese ‘capitalism’ is a means to an end, as those getting rich on it will find out.

        • gamermanh@lemmy.dbzer0.com
          link
          fedilink
          English
          arrow-up
          3
          ·
          10 months ago

          Optimistic outlook for a country that’d about to hit a massive population collapse and fall out of their current position in the world as early as the 2050s

  • Fake4000@lemmy.world
    link
    fedilink
    English
    arrow-up
    8
    arrow-down
    32
    ·
    10 months ago

    Most popular does not equate to better.

    Countless ev cars were made and dumped in massive Chinese car burials just to achieve certain sales records and government mandated KPI