To The Moon

$NIO Inc.(NIO)$ has just been given a vote of confidence after it received a $2.2 billion strategic equity investment by CYVN, an investment vehicle based in Abu Dhabi. This follows a series of strategic partnerships and reforms that have been announced by the Chinese electric vehicle startup trio that includes $XPeng Inc.(XPEV)$ and $Li Auto(LI)$ , besides Nio. However, these measures could not mask the softening domestic demands for EV in their local and largest market, that is also not helped by the prevailing price war that has resulted in narrowing profit margins for all EV makers. Hence, until there are signs of improving demands, I would stay on the sideline.

It needs a brave heart to invest in $Faraday Future Intelligent Electric Inc.(FFIE)$ that has witnessed some of the wildest swings in prices among US stocks. Faraday Future's market value has crashed over 98% so far this year, so that even a 42% shot through the roof last Thursday that was one of best trading days was not going to save the day for the debt-ridden company that has been struggling under deteriorating fundamentals. There may be some short-squeeze in play to boost the stock price, but unless its fundamentals improve over time, I believe that rebound will be short-lived when fundamentalists return to the market.

Its peer $Rivian Automotive, Inc.(RIVN)$ appears to fare much better with support from its anchor investor Amazon, as the e-commerce giant plans to electrify its delivery fleet. New deals like that signed recently with AT&T for the latter's commercial fleet has also shown that Rivian remains a competitive player in the EV industry amidst economic headwinds. Hence, I would favor Rivian over Faraday Future and the Chinese trio for short-term EV play.

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