Tyler Crowe

It seems like the legacy automotive industry spent the prior couple of decades on this massive consolidation streak.

We saw mergers or the hollowing out or discontinuation of various brands that people knew for decades.

Similar moves because there was this acknowledgement that the industry was probably too fragmented for anyone to really make any money.

Fast forward to where they thought they were in a good place, and now, all of a sudden, we have all these new EV companies popping up and making their mark to varying degrees of success.

Also, financially, it's starting to get a little strenuous as well.

Even this most recent quarter, BYD announced that it saw a 19% decline in profits, in part because other EV companies are clawing to take it

take share.

BYD in 2025 was the largest producer in China.

In the first quarter of 2026, it's the fourth largest.

It's really changing quite fast.

This leads to a little bit of a question.

Setting aside, any thoughts on whether you can buy stocks on the Chinese mainland versus Hong Kong and some of the challenges that come with trying to acquire Chinese stocks, do you see Chinese EV companies as good investments right now?

I see a fiercely competitive industry that's going to price itself out of profits for probably several years.

Jason stole my line here.

Coming up after the break, we are going to take a broader look at not just Chinese EV companies, but the automotive market at large, and look for opportunities.

I think another ironic twist in the EV story is just how a few months ago, we started to see big automotive makers in the United States pull back from EV manufacturing and took some considerable write-downs as they tried to reshuffle or redo their portfolios.

Some of them are saying, hey, we just needed to redo it, and we're

require write-downs as a result, but that probably meant there was a little bit of a misstep here.

Now, I'm not going to say this was the sole reason, but the decisions did line up quite nicely with the end of the EV tax credit in the United States, which I think ended, I believe, in October of last year.

So, just a little bit of a timing seems very serendipitous here.