The Future Is EVs!

Electric vehicles are hot at the moment because these cars are being promoted as futuristic rides. Most importantly, companies that are trying to build EVs — are trying to marry the most futuristic technologies into these EVs such as fully autonomous driving. In the United States, we got Tesla, but in China, there are hundreds (or probably more since I don’t know the exact number but I know there are a lot of them) of new EV makers compete for the same niche but eat away the traditional ICE (Internal Combustion Engine) car market. For Chinese EV makers, I’m particularly interested in Nio, Geely, and now Aiways.

As we all know the largest EV market in the whole wide world is in China. So, it’s natural for me to be very interested in the Chinese EV makers. Aiways is different than the other two EV makers I mentioned because Aiways isn’t yet a public corporation/company — and only a three-year-old (private) company. Yet, Aiways can already deliver Aiways U5 to the European market. This means Aiways is the first Chinese car company to deliver EV cars outside of China (homegrown) market. This makes me wish for Aiways to start an IPO (Initial Public Offering) soon so investors around the world can begin investing in Aiways’ adventure as a hot new EV maker.

I just sold all of my Nio position when Nio hit $9.26. Now, Nio is like around $12.88 at closing for the day. I guess I had sold Nio a bit too early. Anyhow, why did I sell all of my Nio position? Well, I read several news articles that had mentioned that the U.S. is trying to pass a bill that would target several Chinese companies that are being listed on the U.S. stock exchange. Since Nio has the support of China’s local government Hefei (capital of Anhui province), I fear that Nio could be one of those Chinese companies that would be targeted since it’s being listed on the U.S. stock exchange. This bill was passed by the Senate and is now in the process of getting ready to go through the House. If the House is going to pass this bill too, I think the chance is high for many Chinese companies to be targeted by this bill. This bill is the reason I’m not so hot for Nio.

What I’ve read so far on the web is that several big-name Chinese companies such as Alibaba are either already listing or going to list their shares on Hong Kong’s stock exchange because they are ready for the days that they could no longer list their stocks on the U.S. stock exchanges. I surmise that Nio might think about this too but I have no insight on if Nio would do this or not. In reality, I got no info on what Nio would do as I’m just another investor who got his info on Nio through the Internet.

I have bought some shares of Geely on Hong Kong’s stock exchange through a U.S. stockbroker. I’m interested in Geely because this company is also trying to build awesome EVs. Geely also owns Volvo, a 10% share of Daimler (if I remember correctly), Lynk & Co, PROTON, and Lotus. I think Volvo is a very good brand, and Geely is doing an awesome job in upkeeping the brand’s good name. I also like Lotus since I love its new supercar Evija (2000hp).

Geely is also well known for making affordable cars for China’s local consumers. If I’m not wrong I think Geely delivered around 2.1 million cars in 2019. This means Geely is no joke! Latest but very well received compact SUV from Geely is Coolray.

Geely is also supporting Volvo’s Polestar to come out with their own EVs. I’m interested in Polestar Precept.

In conclusion, I’m interested in investing in China’s car market because I think China’s huge population of 1.4 billion people and counting is also interested in buying Chinese cars. Furthermore, Chinese car companies will venture out of their homegrown market and start selling cars in Europe and elsewhere in the world. As a small investor, I love to look for more ways to generate income, and so investing in Chinese automakers is a no brainer for me. I think EV automakers will be able to eat away a huge chunk of traditional (ICE) automakers’ market share. I think the future in terms of cars is EVs and not of ICE types of cars. Naturally, I’m interested in investing in EV automakers.

Disclaimer: I had bought shares of Nio but sold them. I’m currently owning some shares of Geely (Hong Kong) through a U.S. broker. Naturally, I’m biased toward Nio and Geely in a positive manner. This means I love to see these companies do well in developing futuristic cars and selling new cars. I do not give out stock advice. This blog post is all about my opinions on what I think of what stocks I like to invest or have invested in. So, please do your homework before investing in anything and do not take my opinions as stock advice and risk losing real money.

Can A More Focus Early Bird Reap The Rewards of EV Market? Neglecting This Market Will Be The Downfall of Any Great Automaker In The Coming Days?

Before you read on, I want to clarify my standing in regard to the pure electrical vehicle all related matters.  To sum it up, I do think the EV market will be huge in the future.  Furthermore, I bought some common shares (stock) and go long on an EV maker which I will not name here.  So, my standing is that I’m biased and positive in the EV sector.

A question I want to address in this blog post is that can a country or a company in a car industry be left behind by ignoring the EV market? It seems Toyota is still moving too slow on going all-in in producing pure electrical cars.  I’m wondering, perhaps, Toyota thinks that the EV market is not big enough and there isn’t enough demand for EV out there, and so it’s OK for them to move slowly into this market.  Nonetheless, I think this would be a big mistake for Toyota and other automakers out there that think the same way as Toyota is currently thinking in regards to EV of all things.

I suspect that Tesla and other EV makers out there who are going long and early into the EV market will be able to set some standards for the whole EV industry.  Why do you think Chinese and South Korean automakers cannot shine brighter than automakers in Japan and Europe? Well, most automakers in Europe and Japan have been at the game much longer than the ones in South Korea and China.  The European and Japan automakers have been churning out complicated but well respected non-luxurious and luxurious vehicles with internal combustion engines for decades.  Nonetheless, when it comes to electrical vehicles, it’s still anybody’s game.

I’m no expert in the auto industry and whatever I’m spewing here is just an ordinary Joe’s perspective on the car industry.  Nonetheless, my suspicion is that the EV market will be so huge and has a very big potential for investors because of several things. 

Firstly, China got the biggest auto consumption market in the world.  Nowadays, if you’re an automaker, I doubt that you would want to neglect such a big auto market as the one in China.  So, when the Chinese government prioritizes EV (and other new energy sources for making vehicles and other transportation means) — I think it’s a very big deal.  After all, the Chinese government demands a certain percentage of pure EVs to be made and sold by each automaker that wants to participate in a growing Chinese auto market.

Secondly, as a country like China and Germany build up EV charging points to promote pure electric vehicles, people are going to be more comfortable to go out and buy more EVs since they know they can charge their vehicles anywhere eventually.  Meanwhile, some EV makers are also trying to improve battery range and charging speed, and thus greatly enhancing the demand for a pure electric vehicle.  Some automakers go as far as to provide a battery switching option which could take less than five minutes to switch out a drained out battery with a full charge one so you can drive your EV out of the charging station in no time.

I think high-cost value products like a car rely on reputation a lot.  Thus, I think when all necessary ingredients are eventually be put in place for the pure electric automakers to thrive, they only have their reputation to depend and fall back onto.  This means, whoever is in the game the longest doesn’t necessarily be the best, the biggest, and the most awesome if the reputation is stink.  Nonetheless, when the time is right for the EV sector to grow, a great reputation is exactly the thing a pure electric automaker needs to thrive onward.  Thus, I think as long a pure electric automaker got an early head start and keeps on building a great reputation, it will be very hard for the newcomers to come in and uprooting the foundation of the great pure electric automaker.

One more thing, Mr. Bill Gates had mentioned that it was his mistake of not pushing more focus into the smartphone industry thus Apple and other Android smartphone makers were able to thrive but Microsoft did not do so great in making a well respected and well-known smartphone.  I think Toyota and whatever automakers out there should take the lesson of Microsoft in regards to being a more focus early bird.

Check out how the Japanese are building the futuristic fuel cell Mirai cars!

After watching a YouTube video on how the Japanese built Toyota Mirai, fuel cell car, I must say that I’m surprised to see humans are still involving in building such a complicated beast/machine. I was thinking that nowadays, building cars should have all been done by robotics mainly, but I guess I’m dead wrong on this. Perhaps, other car companies may deploy all sorts of robots to build their cars, but it seems Toyota is still using a lot of human technicians to manually guide machines that do heavy lifting auto parts into place so the same technician or other technicians can begin to bolt these auto parts together to form a more complete car.

Is China Using The Opportunity of Electrifying Its Transportation Systems To Dominate 5G Market?

Why China is so intense in promoting electric cars over gasoline guzzled cars? I think there are more than a few incentives for China to promote electric cars over gasoline guzzled cars! The first incentive is so obvious that I don’t even need to talk about but I’m going to anyway.

Firstly, China has a very big pollution problem! Although China is no longer having the most polluted cities in the world since India is now taking over this top spot, nonetheless China is still seeing Chinese big, busied cities are being polluted by coal and gasoline heavy usages. The Chinese government has continually battled pollution by shutting down companies’ plants that rely on coals. Now, China pushes the pollution war ahead by promoting electric cars over gasoline cars. Meanwhile, China is heavily building more renewable energy sources such as wind farms, nuclear power plants, solar farms, and whatnot.

Secondly, China wants to control the auto industry market better since China got a bigger middle class than anyone else. This means China wants to see homegrown champions in car making and other automobile vehicles. This means China wants to have a stronger foothold in producing automobile vehicles, but the United States and Western countries are expert in making traditional automobile vehicles such as gasoline and diesel ones. Since China cannot compete directly against the West in making traditional vehicles, and so China is promoting electric vehicles to push homegrown automobile vehicle making companies to leapfrog the Western automobile companies in automobile technology through electric vehicles.

Thirdly, China knows that when there are more electric vehicles on the roads and highways, the transportation system needs to be upgraded to become more futuristic. For example, electric vehicles of the future could be driverless and so each of these vehicles needs to communicate with each other and also to the transportation system itself. This is why China is heavily pushing for 5G. With 5G technology through homegrown companies such as Huawei, China can push for electric, driverless vehicles and smart transportation systems without worrying about the feasibility of vehicle safety since 5G will speed up the data communication between the nodes/vehicles on smart, futuristic transportation systems.

I think China is using the 5G opportunity to push its transportation systems toward electric but also using the electric proliferation opportunity to fight pollution and dominating the telecom industry of tomorrow which is 5G. It’s a marriage that pushes the Chinese economy to higher ground in the coming months and years. This is why I think China is so protective of Huawei. Huawei is a leading 5G company in the world, and so I don’t think China will take it easy at all if anyone is going after this company. After all, China got a goal to meet — electrified Chinese transportation and telecom industries.

Can The Automation of Cars Do Away With Dealerships?

I imagine that the future of transportation is all about automation. I don’t think this is at all a guess because one just takes a look at China’s huge population and see why right away. I can’t imagine that all people in China, each and every one of them, own a car because there won’t be enough space on the roads and highways — the traffic would be stupidly horrendous than ever before. This is why I think China may lead in the race of AI and car automation!

In order for the automation of cars, I think AI needs to be improved tremendously so accidents won’t occur so frequently. At least, the AI should be a lot better than the human drivers. Once the AI part of the automation of cars got nailed down, I can see that a car service such as Lyft would try to deliver cars to whoever needs ’em. This is when 5G comes into the picture to facilitate the communication between cars, cars and the transportation system, and so forth.

Anyhow, in this blog post I want to concentrate on the Lyft part of the whole automation of the transportation equation. I’m wondering, how Lyft and Uber would fare in a world where all cars are driverless? Imagine, car companies could actually get into the Lyft game themselves. Why would they allow Lyft and Uber to be the middlemen?

Nonetheless, I can see those car manufacturers like Toyota may not want to join the Lyft game because of additional costs. Perhaps, car manufacturers rather manufacture cars only and let the costs of the logistic of delivering cars to the user through car services such as Lyft and Uber. Then I’m still wondering how the dealerships would fare, right?

I can see those car manufacturers would prefer to deal directly with car services such as Lyft and Uber and let go of their dealerships entirely in a world of driverless cars! The dealerships would become rather redundant unless the car manufacturers prefer to allow the dealerships to become a car service like Lyft and Uber. But we have to ask who got more experience in delivering a car to a user in a taxi manner? Of course, the answer would be Lyft and Uber and not the dealerships!

In summary, I think if we’re heading in the direction of all cars to be driverless, then I can see the fading out of car dealerships in favor of Lyft and Uber. Of course, I could be wrong and the car manufacturers like Toyota decides to join the Lyft/Uber game and turn their dealerships into Lyft/Uber service. Nonetheless, I still can’t see car dealerships to be around when driverless cars become proliferated. I see car making companies may rely on Lyft/Uber sort of service or just jump into the game themselves delivering cars through an app and not relying on a costly dealership.

Tesla’s Online Selling Only Is A Desperate Move?

Tesla announces that it will close most dealerships to cut costs and to mainly sell cars online. To know more about this new development on Tesla’s online car sale only you can read this article “Tesla Online Sales — Bigger News Than $35,000 Model 3.” What I think about this?

So, I don’t own any Tesla car, but I’m driving a Toyota! My Toyota is a hybrid car, and so I don’t trust auto mechanic from auto mechanic shops. I’ve always brought my car into the Toyota dealership. Of course, sometimes I think I do have to pay a little bit more in the dealership than at the auto mechanic shop. Nevertheless, I’m pretty lucky because the Toyota dealership I go to never upsells me. Sometimes, I even persuade them to help me maintain my car, and this is really an ironic thing to do.

For an example, two weeks ago, I carelessly drove over a curb in Dunkin Donut! Yep, that was a stupid thing to do, but it could happen to the best of us. I brought my car into Toyota dealership to have a quick check. They ask me how the car was driving. I said it felt alright, but I need a quick check anyway. They gave me a free check and told me everything was alright. I had to persuade them to do a car alignment anyway.

Now, it seems I have digressed but I assure you I’ve not! How? Let’s say I currently own a Tesla and want to do something similar to the situation above, but how am I going to do so if all Tesla’s dealerships are closing?

I think it’s a bad move for Tesla to sell cars online only! Furthermore, if Tesla is in a good financial position, it does not have to do this! Perhaps, it should close only the dealerships that do not perform in selling cars, but it should not close all stores. I’ve heard that model 3 is not that great since many sought after options do not make into Tesla model 3. One example is that Tesla model 3 does not carry leather seats! Am I wrong on this? If I’m not then Tesla model 3 isn’t that appealing!

Tesla is trying to cut costs, closing stores/dealerships and reducing prices for Tesla models. All these measures could be a good thing for prolonging Tesla’s lifespan. Nonetheless, this does not mean Tesla is in a healthy condition! Some cost-cutting measures such as closing all brick and mortar stores are quite dubious in my opinion!