To The Moon

Tesla and BYD are the world's largest electric-vehicle makers, becoming more direct competitors in China and much of the world. A lot of attention is focused on EV startups such as Nio (NIO), Li Auto (LI), Xpeng (XPEV), Rivian (RIVN) and Lucid (LCID). Efforts by traditional auto giants such as General Motors (GM), Ford Motor (F) and Volkswagen (VWAGY) also get coverage. However, Tesla and BYD stand apart. 

Last week, the market welcomed a new EV player, Xiaomi! With the impressive of its new EV SU7, Lei claimed the standard version of the SU7 beat the Model 3 on more than 90% of its specifications, except on two aspects that he said it might take Xiaomi at least three to five years to catch up with Tesla on. He also said the SU7 had a minimum driving range of 700 kilometers (nearly 435 miles) versus the Model 3′s 606 kilometers. The company said orders had exceeded 50,000 cars in the 27 minutes since sales started. I am very $XIAOMI-W(01810)$  due to the release of SU7 which is undoubtedly very competitive in EV market. The share price also formed an uptrend as shown below.

Xiaomi daily chart

Back to the leader in China, $BYD COMPANY(01211)$ , its low priced range EVs are gaining a lot of market in China. The company also grabbed the champion title from Tesla in terms of EV sales quantity in China. BYD share price reaches its uptrend support and I believe the share price will rebound from this line next week.

BYD daily chart

How about the classic EV leader, Tesla? I remain $Tesla Motors(TSLA)$  for the company despite all the downgrade on Tesla target price recently. I believe the worst will be in this year. By looking at its technical chart, Tesla just broke out from its ascending triangle pattern and tested back the support at around 175. It will be good for the share price to stay at this level and the next target price will be 200 USD. FSD is the latest stimulus for Tesla. However, the recent release of SU7 might be a threat for Tesla.

Tesla daily chart

With Tesla margins now more like a traditional automaker, and with growth constrained for the near future, Tesla stock has a high valuation for its EV-led operating businesses. Much of Tesla's valuation is clearly based on hopes that Musk will achieve breakthroughs in self-driving, robotics and AI. 

How about the other Chinese EV makers like Nio and Xpeng in China? Both of them are not doing great mainly due to a lower delivery forecast for current quarters. Both the companies share hit new low recently, without sign of brake. 

Nio daily chart

Nio share price unables to sustain above the double bottom support level and plummets below. The journey will be tough for $NIO Inc.(NIO)$  with high probability for the share price to go further down! Similar to $XPeng Inc.(XPEV)$  , as the share price broke below the uptrend channel, the stock tumbled over the week and I believe we will see more downside next week. 

Xpeng daily chart

How do you see the EV market? More and more innovative players join the game and the competition is far beyond our imagination. Do you still look good on the EV sector? 

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