Are u still buying EV stocks??

Let's have a quick overview of its annual deliveries.

BYD: 3,024,417 vehicles (up 61.9% yoy)

Tesla: 1,810,000 vehicles (up 38% yoy)

Li auto: 376,030 vehicles (up 182.2% yoy)

Nio: 160,038 vehicles (up 30.7% yoy)

Xpev: 141,601 vehicles (up 17% yoy)

Rivian: 50,122 vehicles (up 146.5% yoy)

Growth in the global EV market is set to slow to 27.1% in year 2024 as a reduction in state subsidies makes the cars less appealing to buyers. Furthermore, limited product choices and inconvenient charging experience have hampered demand, impacting the market growth of EVs. This is clearly evident as the overall slowdown in the EV transition has prompted several legacy automakers, such as Ford, to scale back their EV production expansion plans.

Using Li Auto as an example,

Sep 2023: 36,060 car deliveries

Oct 2023: 40,422 car deliveries

Nov 2023: 41,030 car deliveries

Dec 2023: 50,353 car deliveries

Jan 2024: 31,165 car deliveries

Feb 2024: 20,251 car deliveries 

Although the car deliveries is on an impressive growth month-on-month, we witnessed a sudden drop in car deliveries in Jan 2024. Has the monthly car deliveries peaked? The company may be capable of scaling up the production, but it is also important to consider the increased compeition from other EV companies that may lead to waning demand for Li Auto cars.

Most of these EV companies are still unprofitable. With persistently high inflation and price wars among the EV companies, it's likely to hurt their profit margin even further, and they are likely to remain unprofitable in the near future. Furthermore, the poor economy outlook from China may affect the short-term EV sales.

In contrast, the US market still remain strong and $Rivian Automotive, Inc.(RIVN)$  is launching new EV models (smaller and more affordable EVs to compete with the China EVs). What's most interesting is the inclusion of Rivian's new 4695 cylindrical battery cells which allow it to generate more power up to 1,200 peak horsepower!! It is going to be interesting!

What do you think? Let me know your thoughts!

$Faraday Future Intelligent Electric Inc.(FFIE)$   $NIO Inc.(NIO)$  $Li Auto(LI)$  $XPeng Inc.(XPEV)$  

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