New Energy Vehicles (NEVs) in China

ZeEa5KPul

ZeEa5KPul

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tphuang said:
This imo is a terrible move by CATL. It's one thing for an American company to build a factory right across the border to Texas to supply America. It's another thing for a Chinese company too. If I was advising CATL, I'd slap them upside down right now. Because they clearly have no idea the political situation in America and views toward shipping of jobs across the Southern border.
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Why is the default assumption for so many people - even people who support China - incompetence? Have you considered the possibility that CATL knows what the environment in Mexico is like and knows what it's doing?
tphuang said:
Quite another thing for a Chinese company that has never dealt with the Mexican cartels.
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I'm sure the "representatives" of these cartels will introduce themselves and arrangements will be made. China has done plenty of business in lawless shitholes before, nihil novi sub sole.

I have my issues with Chinese companies shipping jobs out of China, but some minor loss of Chinese jobs must be weighed against a Chinese company dominating battery supplies in North America. It is very geopolitically useful to strangle any nascent American battery industry in the cradle.
 
tphuang

tphuang

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ougoah said:
Except Mexico isn't a shithole. Stop listening to trump.

Potentially a business initiative that will bring CATL more earning stream. Why not. Politically excellent.
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Oh, I've been to Mexico city twice in the past 8 months. I stayed at Polanco and Roma Norte. One of the most beautiful cities I have visited. I could stay there for a month, no problem.

I've also been to Northern Mexico where the cartels are definitely in control of things. People I spent time with were worried that their family members would get abducted. Right after I left there, a major bomb went off at a place very close to where my hotel was. And things have only gotten worse in the Northern states since I last visited there.

But if you open a factory in that part of Mexico, be ready to deal with the Cartels. It would've made more sense if they opened something around Puebla. A lot more police protection and an industrial base there. Sure, the transportation is a little longer, but a much safer place to start for a company without experience in Mexico. They'd also get more progress opening up a factory around Mexico City rather than around Monterrey.
 
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yungho

Junior Member
Registered Member
ZeEa5KPul said:
Before we even consider that, we should examine whether the "fact" that Buffett sold shares is true or disinformation. One of the more effective disinformation tactics I've observed is shifting the conversation to "why did X happen?" without ever establishing that X actually happened.
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It's not clear yet, but his shares showed up in Hong Kong exchange's Central Clearing and Settlement System, which is usually a sell signal. Buffet hasn't made any moves since he bought his BYD shares so we'll wait and see.
 
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dingyibvs

Junior Member
tphuang said:
https://twitter.com/i/web/status/1548828932987707392

This imo is a terrible move by CATL. It's one thing for an American company to build a factory right across the border to Texas to supply America. It's another thing for a Chinese company too. If I was advising CATL, I'd slap them upside down right now. Because they clearly have no idea the political situation in America and views toward shipping of jobs across the Southern border.

And even aside from that, they will be dealing in a country that has no control of its northern half. Yes, I've been to Mexico several times. It's one thing for American companies that have had years of dealing with producing things in Mexico. Quite another thing for a Chinese company that has never dealt with the Mexican cartels. Yes, they might save a little on labor and delivery cost, but just wait when the Republicans decide they want to close the southern border right before the midterms.
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Mexico can be a scary place for people from safer places like the US and of course China, but compared to many other places around the world where Chinese companies operate, it's practically paradise. As for Republicans closing the border, they probably won't stop shipments of batteries, which most likely will go to a very Republican state of Texas given that's where the Austin gigafactory is at. Even if they did, there's plenty of demand elsewhere in the world and they can be exported to say Europe or even back to China. Not very efficient, of course, but it won't be a death sentence for the factory. I think the upsides outweigh the downsides. I mean, why should they let LG and Panasonic have free reign in one of the biggest and most lucrative auto markets in the world? CATL can potentially crush the competitors before they're Huawei'd, and become unbannable solar panel-style.
 
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yungho

Junior Member
Registered Member
ougoah said:
Overpumped stocks. Why not offload.

Tesla is still overvalued by a mile and a half. Elon himself in previous years have publicly announced tsla prices too high. Buffet is free profits.
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Because that's not Buffett's style. That's why his shares on the clearing system is significant. If Buffet's selling, it's because he thinks is this the top or something has fundamentally changed that invalidates his thesis.
 
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