To The Moon

EV market, a market full of competition and challenges now. More competition and flagging demand in the Chinese market hit leading battery and plug-in hybrid vehicle makers.

BYD reported a 42 per cent fall in its electric vehicle deliveries in the first three months of the year compared to the final quarter of 2023, allowing Tesla to reclaim the crown as the world's largest seller of battery electric vehicles.

However, Tesla is also coming under increased pressure due to increased competition and an ageing line-up, something that may see BYD overtake it in EV sales again in the coming months.

Let's look into a few EV related counters. We will begin with Tesla. Tesla has suffered a slowdown in China, the world's largest EV market, where it faces rising competition from local rivals, many of which are able to undercut the company's prices with fresher vehicles. For such reason, the company share price remains very weak since the beginning of the year. Currently it seems to find its short term support around 160 USD. We could also observe a double bottom pattern formed here. I think $Tesla Motors(TSLA)$  has found its short term bottom and waiting for the right moment to rebound. All the bad news seem unable to further push the share price further down. Worth to monitor now.

Tesla daily chart

How about Tesla's strongest competitor, $BYD COMPANY(01211)$ . Gaining an early edge with its fully vertically integrated supply chain, BYD is now facing competition from not only traditional carmakers and EV start-ups, but also Big Tech companies that are angling for a piece of the huge China market, such as Huawei and Xiaomi. Its share price recently breaks down the uptrend line and might start to further pull back. 

BYD daily chart

Next, $XIAOMI-W(01810)$  , undoubtedly this is the hottest company in EV news recently, with the release of its new and super competitive EV model, SU7. The share price managed to close the gap from the gap up earlier this week. The long lower shadow in its candle signifies a strong buying support energy at this level. Therefore, a rebound is highly expected next week. 

Xiaomi daily chart

How about the classic trio, Nio, LI and Xpeng? All of them are performing badly recently, both in their delivery numbers as well as share price. 

NIO daily chart 

As we can observe in both charts, $NIO Inc.(NIO)$  and $XPeng Inc.(XPEV)$  are having an obvious bearish downtrend without sign of bottoming for the moment. I believe the situation will continue until the overall EV market recovers, which might take some time for this to happen. Not worth to open the position now as we do not know where is the bottom for them. You don't want to get trapped for long in such stocks by simply catching the falling knife. 

Xpeng daily chart

How do you like this analysis? Come and leave your comments below, which EV maker is your favourite and too pick? Classic Tesla or new Chinese makers like BYD or Xiaomi? 

@TigerStars  @MillionaireTiger  @CaptainTiger  @Tiger_comments  @Daily_Discussion