Comment by bytesandbits

I could give you many reasons. I see where you went wrong, here are some to think about:

- next time don't just look at stock value and volume. Look at cashflow

- Consider that most investment volume comes from institutional investors in Wall Street, not in China. Even Chinese investment is routed through NY, Singapore, UK, etc, with the slight exception of Hong Kong.

- Consider geopolitics before investing too. Trump really went all-in in tariffs that basically geofence EV business to american brands.

- The hope for BYD is in EU and UK markets. EU has also been extremely harsh to welcoming BYD and protectionist of their (German) auto makers. This hasn't avoided BYD entering the market, but also has stopped them from shipping en masse. Might change.

- BYD is not a competitor to Tesla. BYD market is the low end market mostly. For example, what today in EU is Dacia (1st or 2nd best seller by number of units). Tesla on the other hand is purposely set up as a mid-high seller. It is too expensive for the cheap segment of the market (10-20k) and is well below luxury vehicles. Different market segment, also better margins in that segment.

- Auto industry is cyclical not defensive. In times of economic uncertainty like today, if you want a solid investment you should look at defensive not cyclical.

- Generally it is a bad idea for retailers to invest in Chinese HQed companies due to the complex geopolitics that surrounding the stock. For example, you have severe limitations in stock market products and they have tight regulation, unlike the US where you have a free-market.

- Consider the market of derivatives. Very different market of futures in China vs the US.

- Tesla is also a self-driving company and robotics company. It would be better compared to XPENG than to BYD.

- Tesla owns the EV market in North America. Period. This is the reality today.

- On top of all that yes the stock is hyped up. But you should know that and invest with that in mind. Being full blown rational in an irrational market will not work.