what's up vincent chan it's money makers
here and today we're talking about all
the updates
you need to know about neo we have lots
to talk about from price upgrades to
tesla versus neo showdown
as well as the summer delivery numbers
so give me exactly what we're covering
today
number one updates on china number two
updates on neo and make sure you pay
very close attention to this
because we're talking about tesla as
well as the summer delivery numbers
number three what am i going to be doing
about neo stock and number four what are
the two
immediate catalysts that you need to be
looking out for because this could
impact the stock price of neo pretty
substantially
in the short term and yes the magic lamp
is back i had to steal a light bulb from
someone's night lamp so welcome back
magic lamp now let's dive into
china and the update is regarding china
scores in eu investment deal
before biden takes office specifically
the deal is called the comprehensive
agreement on investment
which officials said will give each
region's businesses greater access to
the others market
we're going to cover some of the
highlights for this bill so far and make
sure you pay very close attention
because it could potentially benefit neo
in the long term however a lot of the
highlighted points right now
are looking to be in the favor of europe
however keep in mind what we do know so
far it is only tentatively approved
meaning that it could change
and more information could be public as
as time goes on but one point is open
market access
and level playing fields one of the core
benefits coming from this trade deal is
the alignment and opening up market
access
thus granting european companies receive
fairer treatment
when competing in the chinese market
restrictions will be removed for
european investors
and china will open up its financial
services cloud services and logistics
to the other party which is european
investors the next highlight is
regarding sustainable development
the deal will now uphold china to commit
to higher standards of conduct
by eliminating forced technology
transfers in distortive practices
so far from these highlights it looks
like a lot of the benefits is on the
european investor side as they invest
inside
china while negotiations are still
confidential and awaiting approval and
writing
the investment agreement will assert
businesses with greater certainty and
predictability especially for those
looking to expand to the mainland
now all the way down here is where we
see some benefits for chinese
corporations
the treaty may also open up
opportunities for chinese corporations
in
outbound acquisitions over bargain deals
as well as benefiting china greatly
especially during the pandemic times
owing to greater market access and
cooperation prospects
strengthening ties between the two
trading blocks so it seems like there
are some benefits on both sides we
definitely want to track this
relationship very closely especially
when we're talking about as a neo
investor
because of their marco polo project and
how this can impact
chinese companies uh expanding and
penetrating further inside the european
market
now let's get into neo updates and make
sure you save for the battle between
tesla versus neo as well as what my
thoughts are around the december
deliveries
firstly neo to match vehicle prices
through january 10th as china plans
20 eb subsidy cut in 2021. with china
announces its attention to slash
electric vehicle subsidies further
neo is fielding an offer to customers to
circumvent the negative impact of the
subsidy reduction
for example what neo is offering is that
if customers pay deposit on or before
january 10th
they can purchase the company's eevee at
the same price as in 2020. the
difference between the price with the
reduced subsidy and the applicable price
in 2020 will be borne by neo now this
could be viewed very positively because
it shows that neo is taking action into
own hands
because one they want to increase market
share by increasing the amount of
vehicles potentially sold
and also boosting order numbers
potentially for the month of december
and january
secondly neo does have the cash on hand
to run with this promotion
and not only because of the direct
offering that they did a couple of weeks
ago
but they also had a massive stockpile of
cash that they could be leveraging for
this promotion
now i do want you guys to comment down
below what are your thoughts on neo
using their stockpile of cash
to run with this promotion do you think
it's a good idea would you rather see
them spend their money elsewhere
next is a tesla versus neo showdown
update and we're starting this off with
an interview that elon musk
had with the ceo of business insider
during the interview they specifically
mentioned about chinese ev companies
and specifically he said it's definitely
not too late we are seeing a significant
movement towards electrification
from volkswagen and a lot of the chinese
companies are very very fast
i would guess the most competitive
company for tesla might be a company
that was created in china
the market there is extremely
competitive they have some very good
companies and they work super hard the
point i want to highlight over here
regarding this section is
i'm assuming that they're referencing
neo because another potential competitor
could be xpang and we know elon musk is
not a big fan of that company
because they allegedly stole code from
apple and from them
so if we go with this assumption it is
really interesting because
from elon taking a shot at neo around
november 6 when he said 420 is 10 times
better than 42
referencing the share price of neo stock
versus neo he goes on to
praising neo on their advancements on
electrification as well as being a
competitive threat to tesla now it is a
very positive sign that elon musk
himself is recognizing these chinese
eevee players
outside of just making fun of them on
twitter because it just further
validates the strength of the
chinese ev players in their market and
makes it an even better investing
opportunity however it is also a
downside because if elon musk sees them
as a threat
he is going to start doing more things
in his power in order to steal market
share
for example on january 1 2021 behrens
released this article that tesla is
selling the model y
manufactured in shanghai for a base
price of 339
000 yuan where the lower price of neo
vehicle which is the ec6 crossover
vehicle which compares with the model y
is selling at 368 000 yuan tesla for its
part is able to cut
costs as it ramps up local production in
china
we are also seeing benefits from the
continuing upward trend of locally built
and delivered cars
which has increased from under 50 at the
beginning of last year to over 70
more recently now of course i do want to
reiterate that china is a
huge huge market for ev vehicles and
it's not necessarily a winner takes all
market however we do want to be tracking
these competitive
threats very very closely because my
biggest concern is when this comes down
into a price war
no one's going to benefit and what
really concerns me is elon musk recently
said it's important to continue to
reduce vehicle prices
i do not think we lacked for desire for
our product potentially referring to
china
but we do lack for affordability now i
do want to emphasize that it's not
necessarily always down to the price
especially for the luxury vehicle
customers
who may rather want a lifestyle
experience from a neo product
versus from the just pure luxury of a
tesla car
regardless i do think that neo could
potentially be slightly impacted from
this lower price
and what's really interesting is seeing
how neo responds
if any and if it does come down to a
price war the last thing we won is just
seeing margins dwindle for each
of these companies however the first
thing we want is for you to turn that
like button
into a beautiful beautiful blue the next
update is increasing of a price target
bank of america securities analyst ming
li reiterated a buy rating for neo and
raised the price target from 54.70
to 59 the main reason for this is that
the analyst
lowered his neo-net loss estimates
through 2022
following the company's three billion
dollar capital raise in december so
again
no new massive news that we haven't
heard before the analyst is pretty much
just regurgitating the information
that we've been talking about for weeks
on this particular channel
so make sure you smash the subscribe
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always get updated with the latest and
greatest now before we move on to my
thoughts on december deliveries
make sure you follow me on instagram for
stock updates video sneak peeks before
they even posted
live q a and much much more hey guys
when i first released this video they
didn't announce the delivery numbers yet
they announced it actually a bit earlier
than originally expected
january 3rd 2021 at 3 a.m eastern
standard time
so essentially neo provides december 4th
quarter and full year 2020 delivery
update
so some of the highlights we want to
focus on is that they surpassed their um
guidance quite substantially neo
delivered 7007 vehicles in december 2020
which increased by 121 percent over year
over year
in q4 they delivered 17 353 vehicles in
the three months
ended december 2020 increasing by 111
year-over-year now keep in mind their q4
guidance on the lower to higher end was
16
500 to 17 000 vehicles so the fact that
they
smashed their higher-end guidance is
absolutely amazing
and in total of 2020 they increase their
vehicles delivery by 112.6 percent
to 43 728 vehicles
now if you remember in early december
there were some concerns of chip
shortages that could slow automotive
production
which could potentially have impacted
neo which is was which was something i
wanted to dig into
and understand how they pulled this off
um but william said that these results
are attributable to the growing
recognition of our premium brand
the competitive and compelling products
and services the expanding sales network
and most importantly the continuous
support from our passionate and loyal
user community
the battery as a service model has shown
popularity among our users
since its launch with the 100 kilowatt
battery pack offered
as an option the penetration of the
battery as a service
has reached over 40 percent among new
orders in december
which demonstrates its competitiveness
and acceptance by users
on neoday january 9th we will unveil our
new sedan model and share the latest
development of our autonomous driving
and other core technologies
aspired by the spirit of always forward
in the theme of the upcoming neo day
we will continue investing in smart eb
technologies accelerating our new
product development
broadening our sales and service network
and striving for the best holistic
experiences for our growing user
community
in 2021 and beyond so they don't really
explain
how they were able to surpass this due
to the chip shortage
was just a very positive sign to hear
this so now let's talk about what am i
personally going to be doing before we
talk about the two catalysts to look out
for
okay i'm still going to continue
tracking neo i haven't purchased any
additional shares yet
um and i know i've been saying this for
the past couple of weeks
however i have been tracking other
investment opportunities
so that kind of got me a little bit
sidetracked however it's fantastic news
that on january 3rd
of the day earlier they released this
delivery number and i think that the
share price is going to be at least on
market open on monday
it's going to be a battle between this
delivery number and tesla's announcement
of
cutting prices in china especially
around a thirty thousand dollar yuan
difference
and seeing how the market will react to
that now if we move on to the next
section and i know we originally set two
catalysts to keep an eye out for but
they did announce their neo delivery
numbers a day early
so it's just going to be the january 9th
neo day for now
now what we can expect from january 9th
on neo day is neo is on track to
announce a few launches at the event
including its first sedan which would be
the company's fourth mass-produced
vehicle
where they believe it's going to have a
coupe design just like the audio 87 and
they expect to start minutes
manufacturing it by the fourth quarter
of 2021
plus they're expecting to launch a 150
kilowatt hour battery pack that will
likely increase
the range of its evs and it's expected
to be compatible with all existing neo
models
so that's really fantastic that they're
not trying to sideline um older neo
models
as well as an upgrade to the neo's
advanced driver assistant system
platform
which is likely to feature lighter
technology now one thing i do want to
keep a close eye on this
is when they announce this i haven't
really dug into the different levels of
autonomous driving
is how does this compare to xpang
because we do know that xpang's pilot x
pilot 3 has the highest level autonomous
driving capabilities
however the asterisk here is expected in
commercially available passenger
vehicles
as of june 2020 according to ihs market
i wonder if that's still going to hold
true with neo's new advanced driver
platform
i have again i haven't dug into the
actual different levels of autonomy um
if you guys have that information i'd
love to hear your thoughts comment down
below
and finally the company will also
announce its second generation battery
swap station
so neoday is definitely something we
want to keep a very close eye on because
of these massive developments
which many people believe is going to
increase the share price as
act as a major catalyst some other
things to watch out for is updates
regarding bngo or bingo stock that no
one is talking about and this is
specifically regarding moves that rpg
made in their portfolio or check out
this particular stock that i'm pretty
bullish on
long term