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At least one major supplier to the Echelon project may have been shown the green light to ramp up production again. The go ahead was apparently given 1 week after stoppage was ordered. It is unclear from the supplier whether BYD is resuming the project or has decided on a more definitive time table for resumption of construction.

Management indicated that they are sticking to their conference call commentary and that my information is inaccurate. Their best guess is that construction will resume in 3 or 4 quarters but nothing is certain.

The Echelon project could go in many directions. A change in scope (downsized if anything), an agreement with a new JV partner, or just more conviction on a financing time table could all be drivers of an earlier restart.

Echelon is a major part of the Bull and Bear thesis on BYD so we’ll keep digging.


Research Edge will keep digging. BYD may or may not