Tesla: Charlie Munger Has A Point About BYD

Summary:

  • Renowned investor Charlie Munger recently suggested that BYD Company Limited is so far ahead of Tesla, Inc. in China that it is almost laughable.
  • We believe Tesla is experiencing huge macroeconomic headwinds, citing various industry and market indicators.
  • With BYD beginning to expand internationally, combined with the reopening of China, we question Tesla’s industry-leading margins.
  • We offer investors a cautious view given the turbulence Tesla is in when it comes to technical analysis, macroeconomics, and fundamentals.

Showroom Tesla

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Investment Thesis

We personally question the continued leadership position of Tesla, Inc. (NASDAQ:TSLA) in the United States, given the margin compression they are experiencing in China. Moreover, despite numerous analysts raising the issue of competition from legacy

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Bloomberg BYD Tesla Competition EV

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Tesla vs BYD Margins

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CnEVPost BYD vs Tesla

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CnEVPost Tesla Monthly Deliveries China

CnEVPost

TIKR Tesla BYD Margins

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CarGurus Tesla Price Used

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Tradingview Tesla Technical Analysis

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TIKR Terminal BYD vs Tesla

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TIKR Terminal BYD vs Tesla

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TIKR Terminal Tesla Cash Flow Stock Based Compensation

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CnEVPost Batteries Leader Worldwide

CnEVPost

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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