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Tesla CEO Elon Musk, whose company operates a large plant in China, has said Chinese automakers are the greatest competitors for his Texas-based company. "They were 26% [market share] a few years ago, up to more than 50% in 2022 and headed towards two-thirds by the end of the decade." Chinese companies have begun expanding into Mexico, Europe and elsewhere, Wakefield said. The EU believes Chinese EVs are undercutting the prices of local models by about 20% in the European market. The influx of Chinese EVs has spurred the European Union to launch into government support for the industry.
Persons: , Carlos Tavares, Elon Musk, Tesla, Musk, BYD, Massimo Pinca, Reuters BYD, Kristin Dziczek, Mathew Vachaparampil, Bernstein, Eunice Lee, Mark Wakefield, Evelyn Cheng, hasn't, Wakefield, That's Organizations: GM, Shanghai International Automobile Industry, National Exhibition, Convention Center, Visual China, Getty, DETROIT, American, of, SAIC, Dongfeng, General Motors, U.S . Bureau, Analysis, America —, Chrysler, America's GM, Ford Motor, automakers, The New York Times, Economist, Reuters, Federal Reserve Bank of Chicago's, Caresoft, Overseas, Chicago, CNBC, European Union, EU, Union, Volvo, Karma, Ford, U.S, Buick, Lincoln Nautilus Locations: Shanghai, U.S, of China, Asia, Europe, China, Japan, Nio, Mexico, Korea, Germany, Beijing, Texas, Turin, Italy, Federal Reserve Bank of Chicago's Detroit, AlixPartners, Russia, America
Bernstein is bullish on the Chinese electric-vehicle market and named Li Auto as a potential winner. "Li Auto remains our top long-term pick on higher confidence in its earnings growth prospect and management execution ability." "Li Auto deserves a premium over its peers on its track record and outlook," the analyst wrote. "We assume Li Auto can grow its market share and reach c. 10% operating margin in steady state." Improvement in consumer sentiment and credit growth could represent further tailwinds," Lee wrote.
Persons: Bernstein, Li Auto, Eunice Lee, Lee, Li, — CNBC's Michael Bloom Organizations: Li, EV Locations: Wednesday's, Russia, China
CompaniesCompanies Law Firms Purdue Pharma LP FollowNEW YORK, May 30 (Reuters) - Bankrupt OxyContin maker Purdue Pharma can shield its owners, members of the wealthy Sackler family, from opioid lawsuits in exchange for a $6 billion contribution to the company's broader bankruptcy settlement, a U.S. appeals court ruled on Tuesday. Circuit Court of Appeals said that U.S. bankruptcy law allows legal protections for non-bankrupt parties, like the Sacklers, in extraordinary circumstances. Purdue has pleaded guilty to charges related to its opioid marketing, while its owners have expressed regret but denied wrongdoing. The Sackler contribution accounts for most of the cash payment in a broader bankruptcy settlement that Purdue values at more than $10 billion. Similar lawsuits related to the U.S. opioid crisis have resulted in more than $50 billion in settlements with opioid manufacturers, drug distributors and pharmacy chains.
Persons: Sackler, Eunice Lee, Richard Wesley, Wesley, OxyContin, Mortimer Sackler, Raymond Sackler, Dietrich Knauth, Bill Berkrot, Alexia Garamfalvi Organizations: Law, Purdue, Purdue Pharma, The, Circuit, Appeals, U.S, Supreme, U.S . Centers for Disease Control, Thomson Locations: U.S, The New York
The bank's "Battery Electric Vehicles Basket" comprises several stocks across the EV supply chain, including automakers Rivian , Lucid and Li Auto . This may be the opportune moment for Chinese EV brands to knock on the doors of Europe." Among the Chinese EV makers, BYD, Nio and Xpeng are "the ones to watch," according to Bernstein. "We expect Chinese EV players to find better success targeting the compact, mass market EV segment that has so far been under-penetrated in Europe," the bank said. Tesla and under-the-radar plays Tesla is one of Deutsche Bank 's top picks in the EV space.
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