A Tale of Two 'quities
Equities in China's EV sector bear looking at, especially since XPeng is now outselling Tesla in the world's biggest electric vehicle market, while Elon is busy rage-tweeting about crypto.
It's the best of times; it's the worst of times. It's a time of said XPeng's revenue rocketing 600% YoY, boosted by its software powerhouse XPilot. It's a time of software powerhouse Didi teaming up with GAC to make EVs, and partnering with Volvo to test its own self-driving platform, Gemini. It's a time to wonder, "Are software companies going to capture the panda's share of the EV downstream value, or automakers?"
"It's also a time to remember that 5 major EV SPACs valued at $60b last year are now down to $20b," says Jimmie Jeremejev. "Let's not forget that, besides vehicle manufacturing and AI tech, there's also battery tech, hydrogen, and add-on tech for the commercial segment of the EV industry, which accounts for more than 80%. I have the feeling the winners will be able to stand out in multiple verticals, which will mean a longer, bumpier road to profitability. But we know there are companies out there attempting such an audacious goal."