China’s EV Industry Collapse, Over 400 EV Companies Have Disappeared & 90% Gone Bankrupt in 5 Years

Musk’s words accurately reflect the predicament faced by Chinese electric vehicle companies, who are struggling for profits and cash flow. According to current data, the operating profit margins of BYD, NIO, XPeng, and Polestar mentioned by Musk are 14 to 74 percentage points behind that of Tesla. In terms of cash flow, this gap is as high as 16 to 20 billion US dollars. These leaders in the Chinese electric vehicle industry obviously fall far short of Tesla in terms of survival ability and risk resistance. The fate of other Chinese new energy vehicle companies is even more worrying. Statistics show that the number of Chinese new energy vehicle companies once exceeded 487 in 2018. However, by 2023, only around 40 new energy vehicle companies could operate normally. That is to say, over 400 new energy companies have disappeared, and more than 90% of the car companies have gone bankrupt. Even those companies that can actually manufacture vehicles have experienced serious breakages in their capital chains this year, including emerging car manufacturers from the second, third, and fourth tiers like Aiways, Leapmotor, Weltmeister, Skywell, Hozon, SITECH, and Future Mobility. These companies are facing different problems, but they can mainly be attributed to the following key factors. #chinaevcar #chinaeconomy #chinacollapse #chinaobserver All rights reserved.