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Leaked BYD Email Sparks EV War

Chinese electric vehicle manufacturer BYD is intensifying its role as a dominant force in the global automotive industry. A leaked internal email suggests the company plans to deepen its price war in China, a move aimed at consolidating its leadership in the world’s largest EV market while aggressively targeting international growth.

According to reports, a BYD email leaked on the Chinese social media platform Weibo yesterday called for a 10% price reduction from one of its unnamed suppliers beginning in January. This bold request is widely seen as part of BYD’s larger strategy to cut costs and further reduce vehicle prices in an already hyper-competitive market.

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What’s going on?

• Canadian Economy Slows in Q3 2024, Per Capita GDP Continues Decline (theDeepDive)

• Canada’s major news organizations band together to sue ChatGPT creator OpenAI (TS)

• Canada Post Starts Layoffs, Union Calls it ‘Scare Tactic’ (theDeepDive)

• Canada to strengthen border after Donald Trump tariff threat (FT)

• Is Elon Musk Rewarding Loyalty or Selling Opportunity with xAI Stakes? (theDeepDive)

• Rents are up 70% in the past decade. The federal government spends billions, but it isn’t helping (TR)

• Australia Races to Save Lithium Mines With $150M Relief Package (theDeepDive)

• Federal government posts $13-billion deficit in first half of fiscal year (Globe)

• France Doubles Down on Nuclear Power With €50B Gamble (theDeepDive)

• Bolsonaro Is Making a Comeback Bid in Brazil and Betting on Trump’s Help (WSJ)

• Businesses Must Plan for War Scenarios Urges NATO Military Chair (theDeepDive)

What’s the latest?

• Economy: Canada's economy grew at an annualized rate of 1% in Q3, down from 2.2% in Q2, with real GDP per capita falling 0.4%. Household savings rose to 7.1%, a three-year high, driven by high wages and declining interest rates. Monthly GDP growth was weak at 0.1% in September and is expected to remain the same for October. Economists predict a Bank of Canada rate cut on Dec. 11, following inflation rebounding to 2% in October.

• GST Holiday Bill: Canada’s GST holiday bill, set to waive the tax on select items from Dec. 14, 2024, to Feb. 15, 2025, passed the House of Commons with Liberal and NDP support. The measure covers items like children’s clothes, toys, meals, and holiday goods, saving individuals $100–$260 on $2,000 worth of purchases depending on their province. The temporary tax break is projected to cost the federal government $1.6 billion, with no compensation offered for provinces matching the cut. The bill now moves to the Senate.

• OpenAI: A coalition of Canadian news publishers, including The Canadian Press, CBC/Radio-Canada, and Globe and Mail, is suing OpenAI for allegedly using copyrighted news content to train ChatGPT without permission or compensation. The lawsuit marks the first such case in Canada, mirroring similar legal actions in the U.S., such as the New York Times' case against OpenAI and Microsoft.

• Inflation: Eurozone inflation rose to 2.3% in November, up from 2% in October, surpassing the European Central Bank's (ECB) 2% target. Core inflation, excluding energy and food, remained steady at 2.7%, with services inflation slightly easing to 3.9%. Markets expect the ECB to implement a 25-basis-point rate cut in December, its fourth this year, while debates persist over the potential for a larger cut.

• Adani: Adani Group stocks rallied following a statement refuting bribery charges against chairman Gautam Adani. Adani Green Energy surged 19% on Friday, recovering from a prior 18% drop, while Adani Energy rose 14.4% and Adani Total gained 7.2%. The rebound follows allegations of $250 million in bribes for solar contracts, which led to a significant sell-off and Fitch Ratings placing Adani bonds on negative watch.

Crowdstrike Q3 2024 earnings

The stock market and stuff

• California to Offer EV Credits if Trump Cuts Federal Incentives, But Tesla May Be Iced Out (theDeepDive)

• Adani Green soars 19% as group stocks recover sharply amid ongoing U.S. legal challenges (CNBC)

• Canada Stocks Upgraded to Overweight by Ned Davis After 22% Jump (Bloomberg)

In the juniors

• Soma Gold Reports Weaker Earnings And Production Decline in Q3 2024 (theDeepDive)

• Simply Solventless Guides To $11.8 Million In Revenue For Q4 (theDeepDive)

• Lithium Argentina Latest Mining Firm To Exit Canada (theDeepDive)

FULL DISCLOSURE: Temas Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Temas Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.