To The Moon

A rebound may be in sight for the Chinese EV startup trio $NIO-SW(09866)$  , $XPENG-W(09868)$  and $LI AUTO-W(02015)$ , as well as the incumbent $BYD COMPANY(01211)$   and their latest but formidable peer $XIAOMI-W(01810)$  , as the Chinese EV industry set its eyes to dominate the global market. With the prevailing price war easing as it is deemed unsustainable even by the EV industry leader Tesla whose CEO Elon Musk had confessed that the EV maker has reached its "natural limit of cost down". Tesla has called for a ceasefire by raising prices in most of its markets in order to avoid further race to the bottom by the various industry players and worsening margins for all. Hopefully, this will reverse the downward spiral in profit margins among the Chinese EV makers and help to improve their profitabilities.

It also helps that the Chinese EV makers are adept in containing their costs. With waning domestic demands and intensifying local competition, they have also been turning their eyes on overseas markets. In fact, they have been taking the world by storm with their EVs that are much cheaper than competing western models. Hence, I believe that current weaknesses in their stock price may present buying opportunities for their long-term growth.

I'm hopeful that the tide will eventually turn for the Chinese EV makers, as they weather the prevailing macro headwinds, and develop more efficient EVs and safer autonomous driving systems.