A rebound may be in sight for the Chinese EV startup trio $NIO-SW(09866)$ , $XPENG-W(09868)$ and $LI AUTO-W(02015)$ , as the Chinese EV industry set its eyes to dominate the global market. With the prevailing price war easing, hopefully, this will reverse the downward spiral in profit margins among the Chinese EV makers and help to improve their profitabilities. With the improving Chinese economy, I expect the trio's deliveries of new EVs to improve over time as well.
With the TikTok ban signed into law in the US previously and being challenged by its parent ByteDance in court, the uncertainty has helped $Sea Ltd(SE)$ and $PDD Holdings Inc(PDD)$ to heave sighs of relief as the duo has increasingly been under intense competition with TikTok which has launched its e-commerce business that has garnered much popularity especially among the youth. A ban of TikTok or its divestiture by its parent would be positive for its competitors. Though it may be still early days to conclude victory for Sea and Pinduoduo, I will keep a close watch on the court ruling and may load some small positions in the meantime on their prevailing price weaknesses.
@TigerWire
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