Tue. Oct 19th, 2021

It doesn’t end until it’s over

Remember the great movies of the eighties?

If so, you may remember a vehicle by Kurt Russell titled – Big Trouble In Little China – is a fantastic film about magic and Chinese mythology …

It’s amazing, but it won’t appear on many “Most Beautiful Movies of the 20th Century” lists.

Anyway, some news this week outside of China made me nostalgic to see this cinematic gem, because there’s a showdown that’s going on there, but not between who you think.

A rivalry is forming between two companies that could change their industry forever …

And while it’s happening all over the Pacific, the reverberations of this battle are sure to be heard right here on Wall Street.

Everyone’s question is: who will come out on top?

Business in the Far East can be VERY difficult, especially for an American company …

The fact that China is run by a communist government means that most companies in that country are appendices of Xi Jinping and his friends.

So what most American companies don’t realize is that any innovation they’ve made there means that the Chinese government can safely use it to create its own version.

Of course, this is not so ethical …

But for many it is the price of doing business in China, and the benefits you can get by saving production costs seem to outweigh the usurpation of your intellectual property.

Do you know who knows?

Elon Musk.

He is well aware of this fact, because right now a confrontation is taking place between his company Tesla (TSLA) and a new Chinese electric vehicle company Xpeng (XPEV).

Of couse…

No one was aware that there was beef between these two companies until recently – then XPeng President Brian Gu – threw this meat on the grill during an interview with Yahoo Finance.

Gu said: “I think the Chinese players are catching up very quickly. Our product, as well as some of the other products that the major players are introducing, are very good and have comparable specifications as well as better features, I think, compared to Tesla. ”

As the children would say …

“Shots fired!”


These are words of struggle …

What makes sense, right? The two companies are competitors, and XPeng may be feeling it, as it has experienced incredible growth in the end.

When it comes to product supremacy …

XPeng has gained ground in Tesla.

Just last month, XPeng saw shipments soar between 617% and 6,565 vehicles, and so far this year, shipments have risen 459% to 30,738, with its P7 sedans and G3 SUVs the most popular.

Still, it doesn’t really touch on Tesla’s figures, as Elon’s company withdrew 227,000 new deliveries last month, a 166% year-over-year jump.

That’s why Gu is creating this rivalry: at least he wants his company to be considered an alternative to Tesla …

And he’s doing very well, because he still had more to say.

“In recent months, our growth has outpaced industry and Tesla in China. But I think it’s a long race because ultimately this market won’t be dominated by one or two companies. There will likely be several players who will likely occupy positions of market share as high as 10% or more. This will probably be the trend and we hope to be one of these best players.

This may not sound like the traditional “talk” that Americans are used to …

But the intention is there.

Gu introduces Elon and Tesla: people are hungry for success in the industry he created himself.

Will he succeed?

Only time will tell…

The best part is: this will only be good for the industry, as competition generates innovation, and this will be what sends this industry into the stratosphere.

Who knows when this rivalry will be less “David and Goliath” – and more evenly matched – but I know one thing for sure …

GorillaTrades will be ready to capitalize if XPeng reaches our business matrix specifications.

We’d love to have you on board for our next round of selections (which could include XPENG), so I’m asking you to subscribe today.

If you dedicate us to our offer: AWESOME! If not, we fully understand …

Do yourself a favor and observe the development of this rivalry; it can be something that makes you make a lot of money.

“Great rivalries should not be built on hatred. They are based on respect, on respect for excellence ”. – Mike Krzyzewski

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