Would You Buy THIS Electric Car from China?

Jeff Siegel

Written By Jeff Siegel

Updated May 15, 2024

If you cannot compete with the Chinese, then 20% to 30% of your revenue is at risk.

These are the words of Ford (NYSE: F) CEO Jim Farley.  And those words came just one week after Farley told reporters that the company has been “secretly” working on a low-cost EV platform.


Because while the electric Ford F-150 is a particularly impressive vehicle, most Americans can’t afford it. 

Of course, I could’ve told him that, but that’s not the point.

The point is, Ford may have seen the light.  The question is, can the company deliver?

Marin Gjaja, COO at Ford’s Model e unit, was quite vocal about competition from China, calling Chinese EVs a “colossal strategic threat.” He further said “Ford better get going on EVs, or it won’t have a future as a company.” 

But if Ford wants to compete with the Chinese, it’s not going to be easy.

Chinese automakers are already building manufacturing plants in Mexico in an effort to bypass US tariffs.  That, plus the ability to make these cars cheaper and faster than any US company will really present a challenge for Ford, and quite frankly, all the other legacy carmakers hoping to keep the Chinese at bay, too.

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To be sure, Chinese automaker BYD (OTCBB: BYDDY) can produce its low-cost EV for as little as $9,000 in materials. That car will soon be available in Brazil with a starting price of about $20k.

Of course, BYD doesn’t have to deal with burdensome union demands. And with the support of the Chinese government, it also doesn’t have to worry about supply constraints in the way US automakers do.  It barely has to worry about profitability. 

I honestly don’t know how Ford will be able to effectively compete.  Even with a nearly 30% tariff on China’s auto imports, a company like BYD could still find its way into the US market.  The only chance US automakers really have lies in China’s ability to deliver a reliable vehicle that meets the high standards of most American drivers.

I’ve yet to drive a Chinese EV, so I can’t say for certain that a company like BYD can, in fact, provide US consumers with a vehicle they’ll be willing to buy. But if they show up at the border with a $20k EV, I bet a fair amount of consumers will be willing to take a chance. And if those cars turn out to be safe and reliable, Ford’s days are numbered.

But this is all conjecture.  We still don’t know how this will play out, or even if China will have the ability to enter the US market.  The one thing we do know, however, is that the race to build affordable EVs is no longer just a thought.  It’s a reality.

Ford is actively looking to build an affordable EV.

Tesla is doing the same, as well as GM (NYSE: GM), Renault (OTCBB: RNSLY), and Stellantis (NYSE: STLA), which just a few months ago announced that it would be partnering up with battery manufacturer CATL to make cheaper EV batteries in Europe. 

But only time will tell if Chinese EV makers can convince Americans to drive their cars.

One interesting thing to point out, however, is that China is not trying to build and sell internal combustion vehicles in the US.  They’re trying to sell EVs, because really, that’s where the lion’s share of growth is coming from in the auto manufacturing market.  A reality that isn’t lost on me, nor is it lost on most analysts who know that the transition away from internal combustion towards vehicle electrification is well underway.  And you better believe we’re going to milk this opportunity for everything it’s worth. 

In fact, my good friend and colleague, Jason Williams has already been making a fortune from a little-known income stream that actually pays you money anytime an electric vehicle plugs into a charging station.  Even if it’s not yours!

It’s called a “plug-in payout,” and it’s actually one of the easiest ways to profit from the rapid development of the global EV market.  But don’t take my word for it.  Just look at the numbers for yourself.

In some cases, you could even earn as much as $34,200 per year.

That’s not a misprint. 

$34,200 per year. 

And you can start earning your very own plug-in payouts right now.

Bottom line: the EV revolution is well underway, and only a fool would miss out on this opportunity to make a ton of cash from it. 

To a new way of life and a new generation of wealth…

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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