Tesla’s profits has been squeezed as they have had to lower prices.
BYD’s third-quarter financial report revealed a significant downturn in free cash flow, plummeting by -$7.3 billion from a robust +$4.8 billion to a concerning -$2.6 billion.
This drastic drop, disclosed by the company today, was primarily propelled by a staggering contraction in operating free cash flows, plummeting by -$7.1 billion from a healthy +$9.3 billion to a mere +$2.2 billion. Despite a relatively modest increase of $200 million in capital expenditures (quarter-on-quarter), these figures underscore a challenging quarter for BYD.
BYD was the only other EV maker that might have been profitable making EVs. Ford, Rivian and others lose over $30,000 for each EV that they make. GM does not break out their EV car financials.
Over half of BYD car sales are hybrid cars. BYDs prior thin profits likely are from hybrid car sales and sales of cellular phone parts.
GM, Ford and Stellantis have new UAW union deals which will increase their labor costs by 10% or so for each of the next three years. This and increased employee benefits will increase overall costs by billions.
🔥 BYD's third-quarter financial report revealed a significant downturn in free cash flow, plummeting by -$7.3 billion from a robust +$4.8 billion to a concerning -$2.6 billion.
This drastic drop, disclosed by the company today, was primarily propelled by a staggering…
— AJ (@alojoh) October 30, 2023
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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You will have a lot of large companies fighting for shares in the EV market. There will be a large number of losers.