Never Seen A Tesla Do That…

by | May 17, 2024

There’s been a lot of talk about Chinese EVs, but it wasn’t until we saw a recent video review of the Yangwang U8 by Forrest Auto Reviews that we realized US automakers might be in real trouble.

In the video, the Yangwang U8, made by the luxury arm of Chinese EV giant, BYD, demonstrates a “tank spin” maneuver that is as impressive as it is unsettling for American automakers.



Let’s take a trip back in time: Anyone old enough to remember the 80’s remembers the fear that Japan would dominate the auto industry with their innovative designs and superior engineering.

However, a combination of economic factors, trade policies, and the resilience of American manufacturers prevented Japan from taking over the market completely.

Cut to 2024 — the same fearful whispers can be heard about China. Chinese companies have made significant strides in technology, infrastructure, and manufacturing, with electric vehicles being a prime example of their advancements.

And China has made tremendous strides as a country, rising up ot its current position as the world’s #2 economy, ahead of Germany.

President Biden has taken a tough stance on China, emphasizing the need to protect American industries and maintain a competitive edge. His administration has implemented measures to curb the influence of Chinese technology and investments in key sectors, aiming to bolster domestic innovation and production.

But will keeping Chinese EVs out of American hands be enough? The Yangwang U8’s tank spin capability isn’t just a gimmick; it showcases the kind of innovation and engineering prowess that could attract consumers worldwide.

In the video, the reviewer can be seen demonstrating some truly mind-blowing features.

The car is equipped with heated, ventilated and massaging seats, a built-in cooler to keep your drinks chilled on the go, advanced self-driving features and even voice-activated controls.

While the Chinese EV that was reviewed in that video is a luxury model, and it comes with an equivalent luxury price — the equivalent of about $150,000 in the US — it is important to note that Chinese automakers have a wide range of vehicles at various price points.

Some of these vehicles are astoundingly affordable, offering features and quality that American automakers have struggled to match at similar price levels. This versatility and affordability are key factors driving the popularity of Chinese EVs both domestically and internationally.

Meanwhile, US EV makers like Tesla, Rivian, and Fisker have been experiencing their own set of challenges. Tesla has faced production delays and quality control issues, Rivian has struggled with scaling up production, and Fisker has encountered financial hurdles.

Add to that the overall slowdown of demand for EVs, possibly because the higher-end consumer who can afford the prices on these cars already have one. American EV makers might need to adjust their offerings to come in at better price points in order to stimulate demand from other segments of the market.

TSLA Stock

Meanwhile, our own Jeffry Turnmire has had a longtime downside target of between 160 and 140 for TSLA stock.

When the stock hit 138 right before earnings, Jeffry told us that it could be getting ready to go higher. Sure enough, despite bad earnings, TSLA bounced hard — as much as 43% from its lowest point.

And while Tesla is still struggling with slow sales, a slightly unstable CEO — and most recently, a federal judge who gave the go-ahead for a lawsuit from Tesla owners who claim the company misrepresented the self-driving capabilities of its vehicles.

But as Jeffry tells us: The news doesn’t make the charts.

And as unlikely as it seems now, he claims that while the stock faces significant upside resistance, TSLA could go on to hit longer-term upside targets or 350 and even 500.

We wouldn’t call this a tradeable opportunity yet. But keep your eye on TSLA.

— The Prosperity Pub Team

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