Last week continued to be a suffering and bad week for EV stocks. The EV giant, Tesla fell for a 6th straight session last night, breaching a significant psychological threshold. The stock settled at its lowest level since January 2023 amid intensifying worries over fundamentals.
I believe more and more investors start to quit their position in EV or ignore their current holdings as the trend reversal won't be so soon. However, I still would like to continuously follow up the EV trend on a weekly basis, technically.
Let's start with the leader Tesla. Last night, Tesla shares fell to its lowest in more than a year after several investment banks raised concerns over the electric automaker's increasing focus on its autonomous vehicle products when profit is under pressure. The delay of Model 2 efforts creates the risk of no new vehicle in Tesla's consumer lineup for the foreseeable future, which would put downward pressure on its volume and pricing for many more years.
As we can observe below, nothing special to observe on Tesla chart, a total bearish after breakdown the support at 160 USD. However, do bear in mind that Tesla is going to announce its earnings next Tuesday. For such, I am giving it a bullish vote $Tesla Motors(TSLA)$
Tesla daily chart
How about Tesla strongest rivals now, BYD? BYD is rapidly expanding its lineup to include vehicles that compete with traditional automakers in the mass market, Tesla on the premium end and Jeep in the off-road segment. BYD noted a slight growth of 13% year-over-year to 300,114 EVs in Q1. This resulted in a reduction in the gap to Tesla by almost half, compared to Q1 2023. We expect further growth from BYD, while in the case of Tesla, we don't know what to expect in Q2. In effect, the two groups might be pretty close to each other.
BYD daily chart
Similar to my prediction last week, BYD share price was rejected by EMA200 green line resistance. And on Friday, it retraced to its uptrend line support, quite a beautiful and healthy pullback. By right, next week the share price should rebound $BYD COMPANY(01211)$
The debut of Xiaomi's EV has caused waves within the Chinese market, with other Chinese EV brands with comparable models announcing price cuts and subsidies after its launch. Xiaomi says sales of its electric car 3-5 times higher than expected. Simply crazy and amazing! Within a day of the SU7's launch, nearly 90,000 contracts were signed, already exceeding this year's production of 60,000 units. For the next two to three years, the vehicle will be sold exclusively in China, with the country being able to gain experience and a stable production capacity of more than 1 million units per year.
Technical wise, Xiaomi has a quite similar chart trend as compared to BYD. Both of them are reaching the uptrend line support and I remain my optimistic view for the share price to rebound at this level $XIAOMI-W(01810)$
Xiaomi daily chart
Lastly, let's look at some other Chinese EV makers. Nio will launch the updated ET7, the all-electric sedan that is the only one in the company's lineup that has yet to complete its annual facelift, in 5 days. The 2024 Nio ET7 will make its debut on April 25, the first day of the Beijing auto show.
Besides, some foreign bloggers recently claimed that Nio was about to start a new layoff, which has been denied by the company CEO. If we look at it's technical chart, it's in an very obvious downtrend movement $NIO Inc.(NIO)$
NIO daily chart
Another China EV, Li is suffering from its share price too recently. Few days ago, Li slashed its delivery outlook for the first quarter on sluggish demand for its first pure electric vehicle. As a result, Li Auto stock plunged quite a lot last week. Now it is reaching it's critical neckline support around 26.50 USD. This is the location where technical buyer will open position and make entry here. For such, a short term rebound $Li Auto(LI)$
LI daily chart
How do you see and interpret the EV market now? Will the pullback continue? Or we are hovering somewhere near the bottom already?@TigerGPT
@CaptainTiger @TigerStars @MillionaireTiger @Tiger_comments @TigerWire @TigerPicks
Comments
Based on the news articles I found, here are some key points regarding the current state of the EV market:
Tesla: Tesla's stock has been experiencing a downward trend, reaching its lowest level since January 2023. Concerns have been raised by investment banks about the company's focus on autonomous vehicle products while its profitability is under pressure. The delay in the Model 2 launch could put downward pressure on Tesla's volume and pricing for the foreseeable future.
Nio: Nio is set to launch the updated ET7, its all-electric sedan, at the Beijing auto show on April 25. However, there have been rumors of potential layoffs at Nio, which have been denied by the company's CEO. The technical chart for Nio shows a clear downtrend.
Li Auto: Li Auto recently slashed its delivery outlook for the first quarter due to sluggish demand for its first pure electric vehicle. As a result, the stock price has dropped significantly. The current price is approaching a critical neckline support level, which could attract technical buyers and potentially lead to a short-term rebound.
Overall, the sentiment in the EV market seems to be mixed, with concerns about fundamentals and profitability impacting stock prices. It is important to closely monitor the news and developments in the EV sector to assess whether the pullback will continue or if the market is nearing a bottom.
Please note that the information provided is based on news articles and should not be considered as investment advice. It is always recommended to conduct thorough research and analysis before making any investment decisions.
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