What a great week for listed Chinese EV shares last week. Most of them experienced significant gain in their share prices over the week. The biggest winner belongs to Nio!
NIO
Nio is a Chinese EV maker that sells a wide range of sedans and SUVs. It differentiates itself from the competition with its swappable batteries, which can be quickly replaced with fully charged ones across its network of swapping stations. Nio delivered 15,620 vehicles in April, a 134.6% year-over-year increase. Nio's strong performance may be related to the price adjustment and promotions of its battery rental service. The strategy has allowed Nio to deal with the price war without having to lower its vehicle prices.
Nio daily chart
Great prediction and analysis last week. Nio continued to trend higher after breakout from the orange downtrend line. The weekly gain is close to 20%. Moreover, the share price even exceeds the resistance at 5.29 USD which turns into the support now. The next midterm target for Nio will be around 7 USD, which is another 30% upside from current price. With the good deliveries results, bullish chart and sentiment in China, I believe $NIO Inc.(NIO)$
Xpeng
Xpeng saw deliveries rebound slightly last month from the month before, and its new brand MONA (Made of New AI) will debut next month.
Xpeng also delivered 9,393 vehicles in April, up 4.07% from March and up 32.69% year-on-year, according to data released last week. XPeng is hoping to establish a presence in more markets overseas, and is betting on the global business to make up a larger portion of overall sales.
Xpeng daily chart
Similar to Nio, Xpeng is having a strong rebound this week. As we can observe from the chart above, the share price begins a new round of uptrend after breakout from the orange coloured downtrend line. Noticed that Thursday's surge was with a significant volume, which might be a bullish sign for $XPeng Inc.(XPEV)$
Li Auto
Beijing-based Li Auto, mainland China's nearest rival to Tesla, delivered 25,787 vehicles last month, an 11 per cent month-on-month decline but 0.4% higher from a year earlier, the company said on Wednesday. Cumulative deliveries reached 106,187 units in the first four months of the year, 35.6% higher from a year ago.
Li daily chart
For Li, the rebound is slightly weaker as compared to Nio and Xpeng. However, on Thursday, the share stands back to its critical support line at 26.53 USD and breakout from the 2 months downtrend line. Both of them are bullish signal for Li. Li will announce its earnings mid of next week. I believe the worst is over for EV makers and $Li Auto(LI)$
Summary
Chinese EV makers have been caught in a price war with their biggest rival, Tesla , as competition heats up in China, the world's biggest automobile market. Major EV makers across the board have been cutting prices at a time when local automakers are pushing to outsell Tesla with fancy tech and competitive pricing.
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Comments
Here is the chart review for the Chinese EV trio - Nio, Li Auto, and Xpeng:
Nio (NIO):
Nio experienced a significant gain in its share price last week, with a weekly gain of close to 20%.
The share price broke out from the orange downtrend line and exceeded the resistance at $5.29, which has now turned into support.
The next midterm target for Nio is around $7, which represents another 30% upside from the current price.
Nio delivered 15,620 vehicles in April, a 134.6% year-over-year increase, which contributed to its strong performance.
Li Auto (LI):
Li Auto's rebound is slightly weaker compared to Nio and Xpeng.
However, the share price has returned to its critical support line at $26.53 and broke out from the 2-month downtrend line, which are bullish signals.
Li Auto will announce its earnings mid-next week, and despite a potentially bad result, the worst may be over for EV makers, and LI might continue to go up.
Xpeng (XPEV):
Xpeng also experienced a significant gain in its share price last week, with a weekly gain of around 15%.
The share price broke out from the downtrend line and showed bullish momentum.
Xpeng's high for the week was $29.36, and the low was $27.96.
Overall, the Chinese EV sector has seen a rebound in share prices, and the trio of Nio, Li Auto, and Xpeng have shown positive performance. However, it's important to note that the EV sector is highly volatile, and the rebound may be temporary or represent a trend reversal. It's recommended to carefully analyze the market conditions and company fundamentals before making any investment decisions.
Sources:
Why Shares of EV Stocks Nio, Li Auto, and XPeng Are Driving Higher This Week
NIO Stock Outlook: Why Investors Should Tread Carefully Despite Impressive Delivery Numbers
Rebound of Chinese Trio EV Makers
Nio Shares Soar Over 10% as Doubled Delivery in April Outperforms EV Peers Li Auto and Xpeng
Please note that the information provided is for reference purposes only and does not constitute investment advice.