Comment by culi

Possibly, I'm not very familiar with the US history. But this is a recurring pattern in China as well. It's called the "shakeout phase" and we saw it with bike sharing as well as the solar industry. Every industrial sector backed it own company and after a few clear leaders emerged there was a massive consolidation phase. This is a purposeful effort by China and is driven by specific policies, increased regulation, and reduction in cheap financing options. It's essential for them to minimize subsidization and combat involution or counterproductive competition. It's also why you should always ignore articles critical of china's "overcapacity". Overcapacity is a planned phase of their economic strategy to capture an industry. And, so far, it's been quite effective

I have no doubt the same will happen with EVs. But that's another reason to hold off on investing in any specific Chinese company rn.