3 stocks that can become the Tesla of China

techtrader (47)in #news • 6 years ago

Anyone thinking of electric vehicles often thinks of Tesla. The company of Elon Musk, however, has difficulty getting a foothold in China. However, the Chinese car market is the largest in the world. The Tesla of China is possibly waiting for a bigger future than Tesla of the United States. These 3 shares are eligible.
China passed the United States in 2009 as the largest car market in the world. In 2017, China produced 25 million passenger cars and 4 million commercial vehicles. In 2020, an estimated 35 million cars will be sold annually. Since 2015, China has also taken the lead in the field of electric vehicles, for Europe and the US.

China is the car country of the world.

The growth in the number of electric cars has only just begun.
By 2030, according to the IEA, more than 13 million electric cars will be sold, 3 times more than in 2017. A quarter of the cars produced in China in 2030 will be electric. China currently accounts for about half of the global production of electric vehicles.
In short: there is much more than just Tesla, especially in China.

China wants to reduce its dependence on foreign oil. Electric cars play an important role in this. It is therefore not surprising that 30 companies already sell electric vehicles.

In 2008 no one bought less than Warren Buffett shares from BYD, accounting for an investment of $ 230 million. Since then, this investment has already risen fivefold (although the stock price has been sluggish lately). BYD is the world's largest producer of electric cars and the world's largest manufacturer of batteries for electric cars.
Whoever thought that Tesla was driving an impressive course with his Model 3 and the Gigafabriek, missed BYD. BYD used its own Gigafabriek four years ago, and it is bigger than the Gigafabriek from Tesla.

Geely learned a lot from his European sister company Volvo in recent years. Both companies have the same Chinese parent company. Geely will significantly increase its range of electric vehicles from this year onwards. From 2020, 90% of the cars sold must be electric.

In contrast to Tesla, American GM has already gained a foothold in China through the sale of Buick, Cadillac and Baojun. But GM knows that the future is electric. It wants to launch 10 new green models by 2025 and sell some 500,000 cars. General Motors is also supported by tech giant Softbank in its autonomous driving technology.