Report
Pierre FerraguÊ

Tesla: Deep dive into Chinese competition - Existential threat?

Multiple media reports make it sound like Tesla is under threat in China, from local manufacturers. Is it true?

In this note we assess the competitive landscape with an analysis of the cost structure of Tesla relative to peers and its market position by segment.
Underlyings
BYD Company Limited Class A

BYD COMPANY LIMITED is a China-based company principally engaged in the manufacture and sales of transportation equipment. The Company is also engaged in the manufacture and sales of electronic parts and components and electronic devices for daily use. The Company's products include rechargeable batteries and photovoltaic products, mobile phone parts and assembly, and automobiles and related products. The Company mainly conducts its businesses in China, the United States and Europe.

BYD Company Limited Class H

BYD Electronic (International) Co. Ltd.

BYD Electronic (International) is an investment holding company. Through its subsidiaries, Co. is engaged in the manufacturing of handset components and modules. Co. also provides design and assembly services for handsets to its customers. Co. provides handset manufacturers of different brands with such services as the manufacture of such handset components as casings, structural parts, and modules, as well as complete handset design and assembly. Co. also provides such services as design, parts manufacturing and assembly for manufacturers of other electronic products.

Tesla Inc

Tesla designs, develops, manufactures, sells and leases electric vehicles and energy generation and storage systems, and provides services related to its products. The company operates as two reportable segments: automotive, which includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits; and energy generation and storage, which includes the design, manufacture, installation, sales, and leasing of solar energy generation and energy storage products, services related to such products, and sales of solar energy system incentives.

Xiaomi Corp. Class B

XIAOMI CORPORATION is a China-based investment holding company principally engaged in the research, development and sales of smartphones, Internet of things (IoTs) and lifestyle products, the provision of Internet services, and investment business. The Company mainly conducts its businesses through four segments. The Smartphone segment is engaged in the sales of smartphones. The IoT and Lifestyle product segment is engaged in the sales of other in-house products, including smart televisions (TVs), laptops, artificial intelligence (AI) speakers and smart routers; ecosystem products, including IoT and other smart hardware products, as well as certain lifestyle products. The Internet service segment is engaged in the provision of advertising services and Internet value-added services. The Others segment is engaged in the provision of repair services for its hardware products. The Company distributes its products in domestic market and to overseas markets.

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New Street Research
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Analysts
Pierre FerraguÊ

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