EV 🚗 found their bottom?
EV seems unable to find their bottom after a few weeks of pullback and consolidation. Last week, the biggest news was that Elon Musk is set to come to India to meet PM Narendra Modi and announce a much-awaited plan to make Tesla electric cars in the country.
All indications point to Musk visiting India to announce his ambitious project, groundwork for which is being done for years. The project is likely to see Tesla commit at least $2-3 billion investment as it sets up a factory to manufacture entry-level electric cars.
Today, let's analyze a few EV stocks. Since we are discussing about Tesla, let's start with this market leader analysis. Tesla started to have some positive news like FSD and Robotaxi for the past weeks which helped to keep the share price stable as compared to other EV stocks. As we can see in the chart below, Tesla is still consolidating between the range of 160-180 USD. Musk's visit to India might stimulate the share price and rush towards the target of 180 USD $Tesla Motors(TSLA)$
Tesla daily chart
Next, we will look at Tesla's major rival in Chinese market, BYD. Tesla recently reclaimed the title of the world's top EV seller km the first quarter after losing it to BYD last year. However, both the US and Chinese automakers reported a sales decline for the past 3 months as competition intensified in EV market and overall demand softened in China amid economic pressure. Moreover, the share price will soon hit its EMA200 strong resistance which might be challenging to break over in short term. For such, I am$BYD COMPANY(01211)$
BYD share price
How about the new EV player, Xiaomi? Xiaomi share price gapped up after the launch of its SU7 EV. For the past week, the share price managed to pull back and filled the gap which was a healthy sign. Obvious higher lows can be observed in the chart below as well. For such, I believe Xiaomi $XIAOMI-W(01810)$
Xiaomi daily chart
We will end today sharing with Chinese Trio, specially on Nio and Xpeng. Similar to all EV makers, Nio and Xpeng are facing tough price war competition as well as soft market demand for their EV. This can be clearly shown through their bearish share price shown below. Both of them are heading towards south, having their share price lowest since beginning of 2024. Therefore, without doubt, bearish vote for both of them! $NIO Inc.(NIO)$
Nio daily chart
Xpeng daily chart
Do you think EV stocks have reached their bottom? Which stocks do you prefer the most? What's your investment horizon?
Come and share with us!
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EV really got hard to predict nowadays especially in the US…
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