This podcast begins by dissecting the Reuters article about the Tesla Model 2 being cancelled as a passenger vehicle.

The conversation moves over to Tesla sales in China, predictions about total sales for 2024 and what Tesla could do to boost sales in 2024. They pivot over to a quick discussion about Porsche's struggles in China and what it'll take to turn its sales around in the China market. They also spend a few minutes discussing Xiaomi's continued sales and XPeng's struggles. 

Tu then talks briefly about Janet Yellen's visit to China and her emphasis on overcapacity in China. Tu then specifies that the overcapacity is much more prevalent on the ICE side, not so much the EV side but that there would nonetheless be pressure to export due to the price war and the inability for many Chinese EV brands to gain any sustained sales traction. 

The episode closes out with what Lei and Tu are looking forward to when they both travel to China for Auto Beijing 2024. 

Support the show

Tu and Lei get right to the Xiaomi SU7 launch. They talk about Lei Jun's showmanship and the popularity of the Xiaomi brand in China which all helped to build excitement for this product launch.

After an extended discussion about ALL THINGS Xiaomi SU7, they move the conversation over to Lei's trip to the NYC Auto show. Lei talks a bit about the World Car of the Year awards and who ultimately won. 

Lei also happened to visit a Rivian store and was able to see the R2 for the first time in real life and instantly fell in love. 

Support the show

Li Auto adjusting their Q1 sales guidance downward was the first topic of discussion in this week's podcast. Of the three WeiXiaoLi triplets, Li Auto has been the darling of Wall Street but their sales have very suddenly hit a wall 

Tu then gives a short lesson on master production schedules, ordering parts and lead times and how any sudden change in that schedule can complicate things and lead to issues with the supply chain and inventory levels. 

Tu and Lei move back to a conversation about Xiaomi and their staying power and the power of social media in China and how it can help and hurt you in a very fast and severe way.

Lei moves the discussion over to the annual press conference from BMW and how they also would like to continue with free markets for Chinese imports into the European market. 

The podcast closes out with some quick hits about some photo ops between CEOs, the EV100 and Nvidia GTC conferences, who spoke at them and what they said. 

Support the show

Lei headed over to Germany for Porsche's Annual Press Conference so much of the podcast was dedicated to what Lei learned about during his visit and led to a broader discussion about Volkswagen Group and what Tu thought about VW Group's annual press conference and how important Porsche is to Volkswagen Group's global goals. 

After a detailed discussion on Germany's largest automaker and one of its most important brands, the discussion moved over to NIO and their reaching 40M swaps. Tu and Lei also talked a bit about NIO's mass market brand Onvo and how it'll be positioned alongside the NIO premium brand and the yet to be launched Firefly brand. 

The podcast ends with a discussion on not counting VW Group out just yet, although the mountain they need to climb to get back into the driver's seat in China seems insurmountable at this time. 

Tu also briefly discusses some of the initial quality challenges some BYD vehicles are having in the export markets, but doesn't see anything out of the ordinary or that shoud be cause for alarm just yet. BYD is new to those markets and their products will react to each of the climates differently but it's a learning process that should help them strenghthen the future quality and reliability of their global portfolio. 

Support the show

Tu and Lei start this podcast out with going over the latest news on the tariff situation on Chinese EVs in the US and EU with the EU now also seeming to lean towards increasing protectionism. 

Lei then moves the discussion over to the R2 launch from Rivian, the follow up to their R1 and emphasizes the affordability factor with the R2. This turns into a broader discusision about Rivian and what it will take for them to ultimately be a successful automaker. 

Their attention turns to the Two Sessions, the Chinese government's largest conference that sets the economic priorities for the year and has most automotive CEO's attending. Lei dives into some of the details of the policies that are being considered at the conference. 

The podcast closes with Tu discussing the recent investments by legacy OEMs as well as BYD & Great Wall into Brazil and South America and how their powertrains differ from the battery electric vehicle. He believes that this is one of the next big potential growth opportunities and the investment into the sector illustrates that.

Support the show

Lei begins this podcast with a brief explanation of the effects of the Lunar New Year on passenger vehicle sales traditionally. 

Tu points out BYD's social media campaign about how 'electric is cheaper than gas' after they'd cut prices of their already low priced vehicles, so much so that they are cheaper than ICE vehicles from Volkswagen and some of the other foreign automakers. 

Lei predicts that Li Auto may be the next EV startup that emerges from the pack in 2024 as others continue to struggle with price cuts and vehicles that aren't as popular among Chinese consumers. 

Tu and Lei then spend a few minutes to share their opinions on the US goverment's connected vehicle investigation and let's just say that both seem skeptical. 

The podcast ends with a discussion on potential HiPhi partners or acquirers including a look at Changan who have been rumored to be kicking the tires recently.

Support the show

Tu begins the podcast talking about how the price war still has legs and will likely last through the end of this year into 2025. BYD has been leading the way with price cuts on their more popular vehicles daring their competitors to do the same. 

Tu then talks about the Buick Electra E5 EV that has just gone on sale for ~$23K and wonders out loud why they can't sell that in the US for a similar price. 

The discussion shifts to the technology companies that have entered the EV competition, in particular Huawei, Xiaomi and Baidu via Jiyue. With Jiyue's sales struggles, they openly wonder what is too much technology and whether Xiaomi can come up with the 'just right' approach to stuffing their EV with tech features. 

They then point out how many legacy automakers have announced dialing back its EV ambitions and the challenges they still have to overcome. They focus on the German automakers and reveal that one of their next MAX guests is Daniel Kirchert, former BMW executive who also co-founded BYTON.

The podcast ends with Tu hoping that there's another price cut for the Model Y in the US since it may put him over the top for buying it himself. 

Support the show

Tu and Lei start out the podcast by wishing each other 'Happy New Year' and discuss a bit about the holiday and their traditions and how it's celebrated by their families.

Lei then moves over to discuss the Chinese Opinions on NEV trade cooperation and both of them add their opinions about how the language and roll out of the opinion piece should be interpreted. 

Tu then spends a few minutes discussing how the premium used passenger vehicle market has changed and is now more of a buyers market.

He then talks about being a guest on Autoline and some of the topics they discussed including Chinese brands entering Mexico. 

Tu and Lei then transition to the news that Ford has a skunkworks team in SoCal working on a profitable small vehicle and unpack their thoughts on that.

The podcast closes with news that HiPhi may be about to close its doors for good and others that have likely built their last vehicles. 

Support the show

Tu and Lei start the podcast out with some of their family traditions for Lunar New Year. 

They then move onto unpacking January sales numbers and emphasizing the MoM comparisons not that important due to Lunar New Year being in January last year. 

Tu anticipates what we should see in March and beyond depending on how panicked the OEMs will be coming out of the New Year break, likely around late February. The goal of course is to keep the metal moving at a brisk pace of course. 

Tu and Lei then move over to the discussion about Evergrande, the Chinese real estate development company being forced into liquidation by a Hong Kong court and how that will affect Hengchi, their EV brand. 

Tu then talks about the impact that could be felt from the just announced partnership between Didi and CATL. 

The podcast closes with a brief clarification on export numbers and who the actual leader in global exports for passenger vehicles was in 2023. 

Support the show

Tu and Lei begin with briefly discussing their latest MAX episode with Gansha Wu, Founder & CEO of UISEE - an autonomous driving startup based in China. 

Tu and Lei then transition over into a detailed discussion about Tesla’s earnings and the role that the China market plays in their earnings and operations and how most analysts miss how important the China market is to everything that Tesla does. 

Lei then changes gears into a discussion about the recently unveiled Porsche Macan EV that still doesn’t have pricing for the China market announced. Tu gets into the recent challenges that Porsche had in the China market and how this could really be a catalyst for the resumption of growth in the China market for Porsche, but it’s going to have stiff competition now. 

Tu and Lei close the show on the announcement that DJI will have, none other than BYD, as an investor and partner for their ADAS systems which should help make ADAS a common feature in mass market vehicles in China sooner rather later.

Support the show