This is the story of nearly every Chinese stock ever. Their market is very different and even simple intuitions don't carry over.

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culi 2 hours ago | parent [-]

Anytime China targets an industry we get a situation where basically every major city has their own brand that they're backing. There's a lot more competition in China compared to western markets that tend to be dominated by a few major players. There's over 100 EV brands in China today, e.g. BYD (Shenzhen), NIO (Hefei), GAC Aion (Guangzhou), and SAIC (Shanghai)

There's been a lot written about China's "Fiscal Federalism"

https://www.sciencedirect.com/science/article/abs/pii/S01475...

	▲	narrator 2 hours ago \| parent \| next [-]
		How they do financial bailouts by printing their own debt-free money and having fine-grained control of the banking system is also something that the west doesn't do.
	▲	next_xibalba an hour ago \| parent \| prev [-]
		They usually go through a major, government driven consolidation phase to establish a handful of national champions. I would bet we’ll see the same in EVs. This ensures scale by which they can dominate the global industry-an explicit target of the CCP.