I have long said there will be two automotive companies in the future: Tesla and the Chinese.
In this video I discuss the Chinese companies and how it will have to see massive consolidation since there are roughly 300 companies that make EVs. This is not sustainable.
▶️ 3Speak
I am quite surprise why you excluded Japanese company Toyota from your list don't they make EV's currently?
Not really. Toyota is into hybrids and not making EVs. The president feels there is no future in them.
It would not be healthy if we only had 2 or 3 automakers. I've recently read an article about Toyota plans on EV market. I can't find the article I've read, but this one seems to be on the same topic:
https://www.caranddriver.com/news/a45942785/toyota-future-ev-battery-plans/
Of course it is a question of how much of it is just talk and how much actual tech is behind it. And even then there will be a question of scale. But I hope at least some companies manage to survive.
There will be more than 2 or 3 auto companies but it might not include many of legacy auto.
Thinking about the future of the car industry, it seems like companies will need to join forces to survive in the long run.
I believe there will be consolidation. The Chinese are going to do it but legacy auto will likely team up to try and remain competitive.
Hmm, that's going to be a great fight between them I guess to know who stands out amongst them
Summary:
In this video, the speaker discusses the future of the automotive industry, focusing on Chinese electric vehicle (EV) makers. He predicts that in the future, there will be two dominant players in the automotive sector - Tesla and Chinese companies. The speaker highlights the challenges faced by traditional auto manufacturers in transitioning to EVs and emphasizes the capital-intensive and challenging nature of the automotive industry. He mentions specific Chinese EV companies like BYD and Xpeng, as well as the potential for industry consolidation. The speaker also addresses the financing struggles of EV companies like Rivian and the role of government support in the survival of these companies. He concludes by suggesting that China is likely to have around 10 successful EV companies by the end of the decade, potentially reshaping the global automotive market.
Detailed Article:
The video delves into the future landscape of the automotive industry, particularly focusing on the rise of Chinese automakers, specifically in the electric vehicle (EV) space. The speaker posits a future where the automotive sector will be dominated by two main players: Tesla and Chinese companies. He contrasts traditional automakers, noting their heavy reliance on internal combustion engine (ICE) vehicles and their limited diversification compared to companies like Motorola or AT&T in the telecommunications sector.
The speaker addresses the influx of over 300 Chinese EV makers, highlighting the challenges of survival and hinting at an inevitable wave of consolidation in the sector. Specific companies like BYD and Xpeng are mentioned as potential key players, while NIO's future is questioned. The capital-intensive nature of the automotive industry is emphasized, drawing parallels to Tesla's historical struggles and Rivian's current financial hurdles despite positive market reception.
The discussion extends to the critical role of financing for EV companies. The speaker points out that until these companies become profitable, they heavily rely on financing, be it government support or debt markets. The speaker anticipates potential Chinese government subsidies for struggling EV makers but stresses the importance of industry consolidation before such intervention.
Towards the conclusion, the video shifts focus to Rivian's unique position of still accessing the debt market and the significance of consistently favorable market reception despite non-profitability. A contrast is drawn between Rivian's situation and the plethora of Chinese EV companies, indicating the challenges of sustainability and the thin line between success and failure in the EV market.
In wrapping up, the speaker projects a future with around 10 viable Chinese EV companies, reshaping the automotive market significantly by the end of the decade. He predicts a decline in the involvement of traditional automakers from Japan, Germany, and the US in the EV sector, hinting at potential dire consequences for these companies unless governmental support intervenes. The overall takeaway underscores the imminent transformation in the automotive industry and the ascension of Chinese automakers as prominent global players in the EV domain.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.