China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

Contemporary Amperex Technology (CATL) / Equity Bottom-Up

Contemporary Amperex Technology (CATL) (300750 CH)

<ul>
<li>Making EV itself doesn't make money, which is why independents like Nio and XPeng are thinking alternative ways to breakeven;</li>
<li>Tesla envisioned to make money through scale, of which BYD bettered. Tesla also envisioned to make money from autonomous driving (ADS);</li>
<li>Nio plans to sell its battery swapping service while XPeng is selling ADS to Volkswagen. Both are experiments aiming at breakeven. Both also have new models to launch.</li>
</ul>


Making EV itself doesn't make money, which is why independents like Nio and XPeng are thinking alternative ways to breakeven;
Tesla envisioned to make money through scale, of which BYD bettered. Tesla also envisioned to make money from autonomous driving (ADS);
Nio plans to sell its battery swapping service while XPeng is selling ADS to Volkswagen. Both are experiments aiming at breakeven. Both also have new models to launch.


New Experiments in China's Crowded EV Space