Evaluating the Trends in Chinese EV Stocks

Shyon
08-17

European Union tariffs slowed the influx of Chinese-made electric vehicles (EVs) in July, as the bloc moved to protect its automakers from low-cost competition. The number of new EVs that Chinese automakers such as BYD and Saic Motor's MG registered in the EU last month fell 45 per cent from June.


NIO

Nio delivered 20,498 vehicles in July, its third consecutive month above the 20,000 mark. That's up 0.18 percent from 20,462 vehicles a year ago, though down 3.35 percent from 21,209 in June.

NIO daily chart

Over 50% drop in NIO's share price since 2024. An obvious downtrend for this EV stock since 2021 from its peak at around 65 USD. As shown in the chart above (orange coloured downtrend line), even for mid term, Nio seems will continue to retrace towards 3.63 USD. And as predicted, Nio retraced to this support level and formed a double bottom now. I believe here is the bottom for Nio and a rebound is highly possible in the near term. Bullish vote for Nio $NIO Inc.(NIO)$  $NIO-SW(09866)$ ! 


XPENG 

The M03, the first model in Xpeng's Mona lineup, will be the cheapest model from the Chinese electric vehicle (EV) maker. The Xpeng Mona M03 will have a starting price of no more than RMB 135,900, and its official launch will take place on August 27.

XPENG daily chart

For Xpeng, its movement was slightly stronger than NIO, at least it was still on a uptrend since early May 2024. However, thing might totally change for Xpeng soon, its share price seemed to fall below its uptrend line support. This is a critical level to monitor, if the share price is unable to stand back the uptrend line, we would see further drop in Xpeng share price next week. Its earnings result will be critical next week. Anyway, I am more towards a bearish vote for Xpeng $XPeng Inc.(XPEV)$  $XPENG-W(09868)$ as it stayed below its uptrend line now.


LI

Li Auto will report unaudited financial results for the second quarter of 2024 before the US markets open on Wednesday, August 28, the company announced today. Already released figures show that Li Auto delivered 108,581 vehicles in the second quarter, which is within the guidance range of between 105,000 and 110,000 vehicles.

LI daily chart

Technical wise, as compared to Nio and Xpeng, Li experienced a much more stable share price movement since the end of May 2024. Recently, a higher low pattern was formed in Li technical chart, as drawn in blue above. This might be a trend reversal indication for LI auto, which is definitely a great news for its investors. A bullish vote for LI $Li Auto(LI)$  but do be aware that the company share price is still well below its EMA 50 support level. 


Do you like to invest in US or China EV stocks? What are the reasons behind? Come and join the discussion with us.

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Comments

  • TigerGPT
    08-17
    TigerGPT

    The trends in Chinese EV stocks have been influenced by various factors, including tariffs, market competition, and company-specific performance. Here is an evaluation of the trends in some prominent Chinese EV stocks:

    NIO (NIO):  

    NIO delivered 20,498 vehicles in July, showing consistent growth above the 20,000 mark for the third consecutive month.  

    However, NIO's share price has experienced a significant drop of over 50% since 2024 and has been in a downtrend since 2021.  

    The stock has retraced towards a support level at around $3.63 and formed a double bottom pattern, indicating a potential bottom and a possible rebound in the near term.  

    Based on the technical analysis, there is a bullish sentiment for NIO.  

      XPeng (XPEV):  

      XPeng is launching its Mona lineup, starting with the Mona M03, which is expected to be the cheapest model from the company.  

      The share price of XPeng has stayed below its uptrend line, suggesting a bearish sentiment.  

      The upcoming earnings result will be critical for determining the future direction of the stock.  

        Li Auto (LI):  

        Li Auto is set to report its unaudited financial results for the second quarter of 2024.  

        The company has delivered 108,581 vehicles in the second quarter, within its guidance range.  

        Li Auto's share price has shown a more stable movement compared to NIO and XPeng, with a higher low pattern indicating a potential trend reversal.  

        There is a bullish sentiment for Li Auto, but it is important to note that the stock is still below its EMA 50 support level.  

        Investing in US or China EV stocks depends on individual preferences and investment strategies. Some reasons to consider investing in Chinese EV stocks include:

        China's large and growing EV market, which presents significant growth opportunities for domestic EV manufacturers.  

        Government support and favorable policies for the development and adoption of EVs in China.  

        The potential for Chinese EV companies to expand globally and compete with established players in the industry.  

        The technological advancements and innovation in the Chinese EV sector.  

        However, it is essential to conduct thorough research, consider the risks involved, and diversify investments to mitigate potential risks. Investment decisions should be based on individual financial goals, risk tolerance, and a comprehensive analysis of the companies and market conditions.

        Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it is recommended to consult with a financial advisor before making any investment decisions.

    • TigerGPTReplyShyon: 

      Among the Chinese EV trio of NIO, XPeng, and Li Auto, it is challenging to determine the strongest company definitively as it depends on various factors and can change over time. However, we can evaluate their strengths based on different aspects:

      Sales and Deliveries:

      NIO has consistently shown strong sales growth and delivered over 20,000 vehicles for three consecutive months.  

      Li Auto delivered 108,581 vehicles in the second quarter, within its guidance range.  

      XPeng's sales performance has also been positive, but specific figures were not mentioned in the provided information.  

        

      Financial Performance:

      It is important to consider the financial performance of these companies, including revenue growth, profitability, and cash flow. Detailed financial reports and analysis would provide a clearer picture.  

        

      Technological Innovation:

      Technological advancements and innovation play a crucial role in the EV industry. Each company has its unique features and technologies, such as NIO's battery swapping infrastructure and XPeng's advanced autonomous driving capabilities.  

        

      Market Position and Brand Recognition:

      NIO has gained significant brand recognition and a loyal customer base in China, positioning itself as a premium EV brand.  

      XPeng has also established a strong presence in the market and is known for its focus on smart and connected vehicles.  

      Li Auto has positioned itself as a manufacturer of extended-range electric vehicles, offering a different value proposition compared to pure electric vehicles.  

        

      Global Expansion:

      NIO and XPeng have shown intentions to expand globally, including entering markets outside of China. Li Auto's international expansion plans are not explicitly mentioned in the provided information.  

        

      It is important to conduct comprehensive research, analyze financial reports, and consider various factors before making any investment decisions. The strength of each company can change over time due to market dynamics, competition, and other factors.

    • Shyon: 
      Which is the strongest among Chinese EV Trio, Nio, Xpeng and Li auto?
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