Elon Musk’s AI Ultimatum
Tesla CEO, Elon Musk, made headlines this week with his ultimatum on artificial intelligence (AI) and robotics. Musk expressed discomfort with expanding Tesla’s role in these areas without securing a minimum 25% voting control. He hinted at a dual-class share structure, but obstacles remain following Tesla’s IPO. Musk’s recent divestment of billions in Tesla shares adds complexity to his pursuit of greater control. The CEO’s vision extends beyond Tesla, as he mentioned the possibility of developing products outside the company if he cannot secure the desired stake. Tesla also revised its electric vehicle driving-range estimates in response to new U.S. government regulations.
BYD Eyes Indonesia
Chinese electric vehicle manufacturer, BYD, has set its sights on Southeast Asia, especially Indonesia. Surpassing Tesla in the fourth quarter, BYD achieved remarkable electric vehicle sales in 2023, mostly in the Chinese market. BYD introduced three battery electric vehicle models in Indonesia, aiming to establish itself as the market leader in Southeast Asia’s largest economy. BYD continues to solidify its position in Thailand, with plans to triple dealerships within the next two years. Thailand remains BYD’s largest overseas market, and the company has invested $504 million in a new factory in the country.
VinFast Remains Ambitious
Vietnamese electric vehicle manufacturer, VinFast, faced challenges in meeting its 40,000 cars delivery target in 2023. Slow EV adoption in certain regions, intense competition, and an uncertain economic environment contributed to the shortfall. However, VinFast experienced a notable increase in deliveries during the final quarter of 2023. VinFast remains ambitious and has unveiled plans to establish manufacturing and battery facilities in India. The company is also eyeing expansion into more markets in the Middle East, Latin America, and Asia, including Indonesia.
Analyst comment
Elon Musk’s ultimatum on AI and robotics is seen as a negative news. The market may see increased uncertainty as Tesla faces obstacles in implementing a dual-class share structure and Musk’s divestment of Tesla shares adds complexity. The possibility of developing products outside the company adds further uncertainty. Tesla’s revised electric vehicle driving-range estimates due to new regulations may impact its market position.
BYD’s focus on Southeast Asia, especially Indonesia, is viewed as positive news. The market may see increased competition as BYD aims to establish itself as the market leader in Indonesia’s electric vehicle industry. Its plans to expand in Thailand also show a positive growth outlook, boosting BYD’s position in the region.
VinFast’s challenges in meeting its delivery target and slow EV adoption in certain regions are negative news. However, the notable increase in deliveries in the final quarter of 2023 is a positive sign. VinFast’s plans to establish manufacturing and battery facilities in India and expand into more markets in the Middle East, Latin America, and Asia indicate ambitious growth prospects, which could lead to market expansion.
