To The Moon

Electric vehicles are taking to the road in record numbers, and the entire industry is heating up in 2023. However, even the industry is growing, the share price of almost all EV stocks are experiencing a deep correction for the past 2 years. 

When you hit the road, are you behind the wheel of an electric vehicle (EV)? Although EVs have been cruising American highways for nearly 20 years, the EV market has recently experienced a growth spurt.

Global EV sales more than doubled from 2020 to 2021, marking a 108% increase. In 2022, the industry hit the milestone of 10 million EVs sold. S&P Global Mobility projects this trend will continue and that EV sales in the U.S. could account for 40% of total passenger car sales by 2030.

EV production has been boosted by the government and investors alike – President Joe Biden has set the goal that half of all vehicles sold in the U.S. by 2030 should be either fully electric or hybrid.

At this point in time, it's difficult to determine which specific companies are best positioned in the EV market – there are a lot of players in the industry, and it's hard to discern which ones may rise to the top of the heap in the coming years. This is part of what makes investing in the EV industry risky – but it may be worthwhile for investors willing to put some time into research and building a diversified EV portfolio.

Some famous choices

Today, let's look into a few famous EB counters. We will start with the leader, Tesla! The company experienced a pullback since July 2023, forming several lower high and eventually breakdown below the symmetrical triangle pattern. Until recently, the stock price shows some reversal strength by forming a short term uptrend as drawn in the figure below, since end January, closing the gap. At this moment, I believe Tesla $Tesla Motors(TSLA)$  will continue to trend higher and challenge the trendline resistance at around 220 USD. 

TSLA daily chart

Another highlight will be Nio, as the company is expected to release its earnings result this week. As we all know, Nio is the weakest among the 3 Chinese EV trio, consistently deliver disappointing earnings result for the past few quarters. As a result, the share price plummets to its new low recently, which is an extremely bearish sign. However, I bet that the worst will be over for Nio soon as I cannot imagine how bad can it continues to perform. In addition, with many Chinese companies deliver positive earnings result, I believe $NIO Inc.(NIO)$  will have the same story too. The share price is currently at its new low, forming a bottom slight above 5 USD which acts as a critical support. 

NIO daily chart

Li, on the other hand, is one of the best performing Chinese EV for the past month, mainly boosted by the outperformed results announced last week. However, the stock is reaching its double top resistance and I expect a short term pullback for Li, therefore a bearish vote for it $Li Auto(LI)$  

LI daily chart

Next, let's look at Rivian. Rivian continued to disappoint its investors two weeks ago after its earnings call. The stock gapped down to below 12 USD with all the critical EMA lines facing downwards. I believe the stock will remain weak $Rivian Automotive, Inc.(RIVN)$  in near term. The big sell down volume needs time to digest before new buyers come in to push the price up. 

Rivian daily chart

Last but not least, the EV meme, $Faraday Future Intelligent Electric Inc.(FFIE)$  . The most scary EV stock that has underwent 99% discount from the peak. The company will probably bankrupt and unlisted soon unless there's a breakthrough or miracle! You can monitor the stock but definitely not invest in it. Even you make an entry in early Jan, you will end up losing over 80% right now, crazy! 

FFIE daily chart

It comes to the end of my today's sharing regarding the EV trends. You are extremely welcome for discussion below. [Grin]  [Grin]  [Grin]  

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