China Moves to Avoid EV Industry Crash

The video discusses the current state of the EV industry, highlighting the bubble created by subsidies and tax breaks. It explains how these incentives have attracted various companies, including non-traditional automakers, to enter the market. The focus is on raising entry barriers, which may push smaller companies out if they can't meet new capital and capacity requirements. The video also covers common practices in China's EV industry, such as using established manufacturing platforms, and mentions companies like NEO and Xiaopeng that will need to adapt to new rules.

Discuss the role of capital and capacity in the EV industry as mentioned in the text.

What challenges do companies like NEO and Xiaopeng face in the EV market?