Waachama
2023-09-26
Great ariticle, would you like to share it?
@Omega88Buying EV stocks is like having a roller-coaster ride! Most of the EV companies remain unprofitable and yet they are still burning more cash to build up on their infrastructure and expansion. A recent example is NIO trying yo raise US$3 billion from its investors. Furthermore, the ongoing price war is likely to hurt their profit margin even further and they are likely to remain unprofitable in the near future. Like most new industries, eventually only a few companies would emerge victorious! A few EV companies (Lordstown Motors, Proterra) have declared bankruptcy recently and I'm sure there's more to come. Unlike Tesla, most EV companies clearly have issues scaling up their production significantly. The competition in the EV market has intensified as numerous traditional car markers (Mercedes-Benz, BMW etc) are also investing and building more EV units. The key question is what is a fair valuation for these EV companies? How fast can it grow over the next few years? Like any new industry, eventually there will only be few survivors. There's still a lot of uncertainties from China economy that include contracting manufacturing activities, high youth unemployment, poor economy outlook etc. Hence, it is likely that the short-term outlook for China's EV will be bleak. What do you think? Let me know your thoughts! $NIO Inc.(NIO)$ $Li Auto(LI)$ $XPeng Inc.(XPEV)$ $Tesla Motors(TSLA)$ $Faraday Future Intelligent Electric Inc.(FFIE)$ @Daily_Discussion @TigerStars @MillionaireTiger @TigerEvents
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