YouTube Question Comment

[Youtube question message] CLEC Investment and Financial Management Education Channel Blog post date: February 5, 2020

Hello teacher, thank you for providing the buying strategy, it is very useful. I have some questions to ask you.

1. I agree that the current Wuhan pneumonia is a correction for the US economic market, not a collapse. What I would like to ask is that China is known as the world's factory. If the Wuhan pneumonia prevents factories from resuming work, affecting cash flow, and coupled with high debt, triggering a wave of company bankruptcies, will this seriously affect the U.S. and even the global economy?

Answer: Your question is a good one. I believe that some Chinese factories and small and medium-sized enterprises will be affected. However, as for the foundries and large enterprises of large companies, they are definitely capable of facing such problems. Cash flow should not be a problem. As for some domestic companies in China, there may be some problems with poor turnover, but this does not affect our investment in high-tech companies of large American companies. The companies we invest in have very low risk exposure in China. Wuhan lung cancer may be a blow to the Chinese economy, but it will have little impact on the global economy and almost no impact on the United States.

2. The recent stock price of Tesla electric vehicles is indeed very impressive, and you are also optimistic about its future development, and there may even be driverless cars in the future! I would like to ask you about the supporting measures for electric vehicles (batteries, charging stations, laws, maintenance costs, yields, Internet) whether they can keep up with the pace?

Answer: Some of the problems with electric vehicles may be problems, but many of the laws and regulations in the United States are already being researched, modified, and customized, which will proceed in parallel with the development of electric vehicles.

Charging stations are no longer a problem in China, and many manufacturers are building them in large numbers. In the United States, there is a small problem in the short term because of the large number of Model 3 deliveries, which results in a small queue at charging stations during peak hours. However, if you drive an electric car for a long distance, you can find charging stations in most places. However, the charging speed is related to the charging station and there are still relatively few fast charging stations. But when Tesla starts making money, the company will have the money to build a large number of fast charging stations. After electric vehicles became popular, many hotels, restaurants and department stores were willing to build charging stations. Firstly, they could attract customers, and secondly, they could make money from the charging stations.

Maintenance of electric vehicles is actually much simpler than gasoline vehicles, which is a benefit. As for the yield rate, I think it will slowly improve, so don’t worry too much. Moreover, Tesla’s production and delivery are now very smooth, so I think the yield rate should not be a problem. However, it may take some time for Tesla to catch up with the world’s first-class automotive industry in terms of automotive craftsmanship and quality.

The establishment of the Internet will take time, but semi-autonomous driving cars will be very popular before autonomous driving is reached. To reach the state of autonomous driving, the construction of 5G is required, so autonomous taxis or autonomous vehicles may be limited to cities. It is impossible to have autonomous taxis outside the city, so autonomous taxis should only be limited to urban areas.