To The Moon

$NIO Inc.(NIO)$ will be among the last of the trio of leading Chinese electric vehicle startup makers to report their previous quarter's earnings results. With lacklustre stock price movements by its peers $Li Auto(LI)$ and $XPeng Inc.(XPEV)$  despite their earnings beats, I would expect a similar outcome from Nio when it is the turn of the EV startup which has introduced and popularised the industry-first battery swapping service to announce its earnings on November 23.

Nevertheless, under the backdrop of growing proliferation of electric vehicles on the roads as governments of nations bothered by air pollutions tighten emission controls in their countries, and along with elevated pump prices due to escalating geopolitical conflicts in the middle east, as well as rising global awareness of climate change, I believe that electric vehicles are poised to overtake conventional vehicles in numbers in the long run, enlarging the EV pie.

Furthermore, the trio of Chinese EV manufacturers have proved to be highly agile in their strategic planning and adaptation to economic challenges such as slowing demand, by clinching long-term partnership agreements with the incumbents in the automotive industry for win-win approaches to stay competitive.

However, I'm less optimistic over their short-term stock performances along with those of their western counterparts $Faraday Future Intelligent Electric Inc.(FFIE)$ and $Rivian Automotive, Inc.(RIVN)$ Bearish, as these smaller players have been struggling to remain relevant amidst rising competition as more and more conventional vehicle makers jump onto the EV bandwagon by launching their EV models. The EV industry leader Tesla is not helping either, as the incumbent wields its muscles to increase its market share by slashing prices of its new vehicles, forcing its smaller peers to follow suit to defend theirs. This has hurt the profit margins, further weakening their balance sheets and cash flows, resulting in lose-lose for the entire EV industry and my bearish outlook for the industry in the near term.

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