Nio, Xpeng, and the EV Landscape: Which Stocks to Bet On?
Nio's Q2 2024 results showed a net loss of $624.1 million, but delivery numbers are up 35.8% YoY from January to August! Moderate Buy rating and $5.97 price target imply 8.84% upside.
Xpeng faces execution issues and poor margins (6.4% vs. Nio's 12.2% and Li Auto's 18.7%). However, its tech focus and autonomous driving capabilities show promise.
Li Auto boasts superior margins, profitability, and attractive valuation (P/S ratio of 1.1x). Moderate Buy rating and $26.82 price target make it a compelling long-term bet.
Other EV Contenders:
- BYD: Established player with strong domestic and international presence.
- Tesla: Global EV leader with a $100B+ brand value.
Key Takeaways:
-Nio's delivery growth is encouraging, but profitability concerns remain.
-Xpeng needs to address execution issues to realize tech potential.
-Li Auto's margins and profitability make it an attractive long-term investment.
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