To The Moon

$Tesla Motors(TSLA)$  will be in the forefront on Wall Street’s headlines next week, as it announces its latest earnings on 18 Oct and kicks off the earnings season for big techs.

As the electric vehicle maker struggles with slowing demands and lower margins with price-cutting to defend its market share amidst rising competition from the likes of XPeng, Nio and Li Auto, expectations are of underwhelming earnings, though I would bet on surprises on the up side given the low bar set by the market. Despite prevailing market weakness, I believe Tesla with its unparalleled industry leadership in EV technology will continue to break new grounds on EV innovations and autonomous driving, setting itself ahead of its peers and reaping first mover advantages.

The Chinese EV market is likely to find support from stimulus package in the work by policy makers to revive the domestic economy that has been struggling to recover from the pandemic. I particularly like $XPeng Inc.(XPEV)$ and $NIO Inc.(NIO)$ for the market appeals of their EV product lines and partnership announcements that have seen Volkswagen investing in XPeng and exploratory talks between Nio and Mercedes on a potential tie-up.

Meanwhile, $Rivian Automotive, Inc.(RIVN)$ has seen improving deliveries as its efforts start to bear fruits, that are expected to help to improve its top line and bottom line in its next earnings report. Its peer $Faraday Future Intelligent Electric Inc.(FFIE)$ though continues to struggle with cash flow woes and deteriorating fundamentals as its deliveries fall behind plan. Its shareholders are not comforted either by the overhang of an enormous stock dilution with its plan on new equity sale to raise fresh funds. Until Faraday Future Intelligent Electric demonstrates signs of improving fundamentals, it will be advisable not to throw it good money after bad.

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