Following my previous article on Tesla, let's talk about China EV counters. These EV counters had been quite calm since the huge rally in July. Investors are probably waiting for this wave of correction to end before opening a new position in these stocks. So, do you think the correction wave will finish soon or the stocks will continue remain at a consolidation phase for incoming weeks?
XPEV
Similar to Tesla, XPeng is also forming a symmetrical triangle pattern since mid August. The fluctuation range is getting smalller at this consolidation phase I believe XPeng will have a higher chance to breakout upwards instead of downwards. It should choose its direction pretty soon. I am $XPeng Inc.(XPEV)$
XPEV daily chart
NIO
NIO daily chart
As compared to XPEV, NIO is rather weaker as it erases all its gain in August. Currently the stock is at a consolidation phase and testing the blue line support. A bit worrying if the stock tends to breakout downwards, the downside will be huge. It's hard to judge based on technical for NIO this week. Fundamental wise, NIO is experiencing stronger delivery growth, with an increase of 81% YoY in August 2023. The company's delivery rebound is a promising sign that supply chain issues and production delays are improving. Therefore, I am short term $NIO Inc.(NIO)$
NIO EC6
LI
LI, formation of a descending triangle, worth to put in your watchlist and monitor for a potential breakout from the downtrend line which might reverse the stock trend for the incoming weeks. Without doubt, LI is still the strongest in chart as compared to NIO and XPEV.
LI daily chart
Li's success at capturing a greater share of the Chinese EVs market may continue, helping to outweigh the impact of a sluggish economy on overall EV sales. If Li's monthly delivery and quarterly results continue to meet market expectations, there is chance for this stock to start another big rally! Therefore, I am $Li Auto(LI)$
XIAOMI
Another EV company? Hmmm interesting. We saw news stating that Xiaomi first EV model is now in the trial of production phase, with around 50 prototypes being produced every week. With the target to produce its first EV model in the first half of 2024, I am mid term $XIAOMI-W(01810)$
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Comments
my avg...is $38...there is light...if the arraignment works out for both...stock could get to $50 this year. I don't think the numbers will be great next week but I expect great things in 4Q.
I firmly believe that NIO will be one of the top 3 leading manufacturers of everything EV.
Share price will most like rise 3000-6000%!
Greenspan once used the term “the irrational exuberance “ but XPeng is not even close, in fact it’s just getting started. The shares have been suppressed enough for too long.
Audi is rumored to be in serious talks with some of the EV makers in China to license their autonomous driving technology and AI systems . Other car manufacturers to follow. XPENG is expected to be one of the leading candidate to receive the contract .
Basically this demonstrates that Xpeng has competitive advantage in technology and manufacturing capabilities over its rivals -- why would VW choose anything else than the best EV maker to cooperate in key market such as China?
September deliveries are trending towards 18K+ and 4 quarter deliveries have been guided for well over 20K+ per month. Xpeng expects to be profitable in the 4th quarter.