BYD’s success is a bubble waiting to burst
BYD’s success is a bubble waiting to burst
Udumbara
0
.
While Tesla’s stock has dropped 40%, BYD’s stock hit an all-time high today. Despite record-breaking financing in Hong Kong and the announcement of ultra-fast charging technology, China’s leading EV maker is likely to follow the same trajectory as the country’s real estate industry, due to its "high debt, high turnover, and high leverage" growth model. In China, BYD faces mounting quality concerns. There are four hidden risks threatening its future:
1. Lack of technological innovation
2. Hidden debt
3. A fragile supply chain
4. Overdependence on government policies
.
