BYD, SAIC & Geely Failed to Give sufficient info for EU Anti-subsidy Investigation
$BYD COMPANY(01211.HK$ $Tesla(TSLA.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ The article reported that the European Commission has warned three Chinese electric vehicle makers that they have not supplied sufficient information for its anti-subsidy investigation, according to two people familiar with the case. If the Commission concludes that the provided information from sampled companies BYD, SAIC and Geely is insufficient, it could use evidence available elsewhere to compute tariffs, a move that can inflate them.
My Take: The investigation, officially launched on Oct 4, can last up to 13 months. The Commission can impose provisional anti-subsidy duties nine months after the start of the probe. In another word, tariffs may be imposed on Chinese EV makers as early as July 2024 which could affect their expansion plan to the EU market; it will also benefit EV makers not affected like VW, Mercedes and Tesla. The 3 Chinese EV makers delivery is predominantly in China.
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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SoundOfMusic : Would potential tariffs be only on these three EV companies (BYD, SAIC and Geely), and not Xpeng? Who knows?
Could Xpeng be more transparent with their financials because they are traded in US and have provided filings? Therefore, Xpeng is not targeted?
ZnWCOP SoundOfMusic: Based on another source, the 3 Chinese EV makers received the highest subsidies which is why they are targeted. If Xpeng receives subsidies from the Chinese government, it will definitely be investigated. Another reason, Xpeng is not targeted yet is because the company has not exported or planned to export cars to the EU. Tesla is not targeted because it has a Gigafactory in Berlin, Germany making and delivering EVs to the regions.
China gives EV sector billions of yuan in subsidies. CATL, SAIC Motor and BYD Topped.
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