Tesla and EV Pioneers: Steering Through Market Trends
Global sales of fully electric and plug-in hybrid vehicles rose by a yearly 21 per cent in July, thanks to China's strongest growth this year and despite dropping demand in Europe. Will it be a good opportunity for EV makers?
TESLA
While the firm has been on a rocky road in the past couple of months over massive recalls and dissatisfying earnings, Tesla's decision to dip its feet further into the AI industry is exactly what's necessary to boost the carmaker's stock. Not only is the world anticipating the company's Optimus robots, but it's also continuing to pay close attention to the self-driving software, as well as the Dojo supercomputer.
Tesla daily chart
Let's look at the Tesla chart shown above, following disappointing earnings results, Tesla share price pulled back significantly this week towards its EMA200 support and even failed to sustain above this critical support. After that, we observed a symmetrical triangle pattern and Tesla successfully broke up. Moreover, the share price managed to stand back above all the EMA lines, especially the green EMA200! Bullish vote for Tesla $Tesla Motors(TSLA)$
BYD
Chinese electric carmaker BYD plans to build a factory in Karachi with a local partner to capture a share of Pakistan's growing EV market. The company will reveal three models it plans to sell in Pakistan, including an SUV and a sedan this weekend.
BYD daily chart
For BYD, since 2024, the share price stays within the uptrend parallel channel as illustrated in the figure above. However recently, BYD share price broke below this uptrend channel which was an alarming sign 🛑. This might represent the beginning of a trend reversal for BYD. Now, the share price seems to struggle somewhere nearby EMA200 support. I remain my bearish view for BYD $BYD COMPANY(01211)$
XIAOMI
Lei Jun, founder, chairman and CEO of Xiaomi, mentioned that the delivery of the Xiaomi SU7 is still accelerating after a series of production enhancements. The delivery of the Xiaomi SU7 Max has been further expedited. The estimated delivery period for current pre-orders has been shortened by six weeks compared to the previous lock-in orders.
Xiaomi daily chart
After a massive rally since March 2024, Xiaomi experienced a bearish movement after May 2024. The pullback was beyond my prediction until it headed towards EMA200 support recently. The good news is Xiaomi share price seems to find its short term bottom at around 16 HKD. Its share price recently rebounded from EMA200 and this week, Xiaomi broke out from its 3 months downtrend line and curved upwards. I believe Xiaomi $XIAOMI-W(01810)$
Do you prefer the older classic leader Tesla or the new Chinese EV leaders like BYD or Xiaomi?
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Tesla Motors (TSLA)
Business and Industry: Tesla is a leading electric vehicle (EV) manufacturer and clean energy company. The EV industry is experiencing significant growth globally, driven by increasing environmental concerns and government initiatives to reduce carbon emissions. Tesla has been at the forefront of this industry, pioneering the development and production of high-performance electric vehicles.
Earnings Analysis: Tesla's recent earnings results have been disappointing, with an EPS of $0.46 in Q2 2024. However, the company's earnings forecast shows positive growth expectations. For the full year 2024, the forecasted EPS is $2.34, with a forecasted gross income of $98.92 billion and forecasting EBIT of $7.51 billion. The earnings forecast for 2025 and 2026 also indicates growth in EPS, gross income, and EBIT.
Trend Analysis: Tesla's stock price has experienced a pullback recently but managed to find support near the EMA200 level. The stock has formed a symmetrical triangle pattern and successfully broke out to the upside. The stock price is currently at $216.12 (USD), with support at $177.41 (USD) and resistance at $247.41 (USD).
Valuation Analysis: Analysts have provided a target price range for Tesla. The mean target estimate is $207.64 (USD), with a low estimate of $24.86 (USD) and a high estimate of $310.00 (USD). The analyst recommendation for Tesla is 7 recommend, 12 buy, 20 hold, 8 underperform, and 4 sell.
Capital Flow Analysis: The recent capital flow data for Tesla shows mixed trends. Over the past five days, there has been a net outflow of capital. However, on a daily basis, there was a net inflow of 69.89 billion (CNY) on the most recent day.
Based on the analysis, Tesla has a positive earnings forecast and has shown bullish signs in its stock price. However, it is important to consider the inherent risks in the stock market and the normal fluctuations in stock prices before making investment decisions.
BYD COMPANY (01211)
Business and Industry: BYD is a Chinese electric vehicle manufacturer and one of the pioneers in the EV industry. The company is involved in the production of electric cars, buses, and batteries. The EV industry in China has been growing rapidly, driven by government support and increasing consumer demand for clean energy vehicles.
Trend Analysis: BYD's stock price has been struggling near the EMA200 support level. The stock is currently in a bearish trend unless it can regain its uptrend channel. Further analysis is needed to assess the stock's potential future movement.
XIAOMI-W (01810)
Business and Industry: Xiaomi is a Chinese multinational electronics company that manufactures and sells smartphones, consumer electronics, and other related products. The company has been expanding its product portfolio and has gained significant market share in the smartphone industry.
Trend Analysis: Xiaomi's stock price experienced a bearish movement after a rally since March 2024. The stock pulled back towards the EMA200 support level but rebounded recently. It broke out from its three-month downtrend line and showed signs of a bullish reversal.
In summary, Tesla is a well-established leader in the EV industry with positive earnings forecasts and bullish signs in its stock price. BYD is facing challenges in its stock price and requires further analysis. Xiaomi has shown a bullish reversal in its stock price after a pullback. It is important to conduct thorough research and consider the risks before making investment decisions.
Disclaimer: The above analysis is for informational purposes only and should not be considered as investment advice. Investing in stocks involves risks, and it is important to conduct your own research and consult with a financial advisor before making any investment decisions.