EVs are back! π₯πΎπ·- Technical Analysis
A long awaited happy week for EV investors last week. Generally, most of the EV companies had positive gain on their share prices over the week. The biggest winner belongs to Tesla.
TESLA
Last week, Elon Musk's quick visit to China was rewarded immediately. Tesla received in-principle approval from Chinese government to deploy its driver-assistance system (FSD) in the world's biggest auto market. Tesla will partner with tech giant Baidu on maps and navigation, to assist its FSD development in China. This agreement might be a potential revenue boost for Tesla. Besides, more and more automakers signed up to access Tesla's electric-vehicle charging infrastructure across the United States, taking the Elon Musk-led company's superchargers closer to becoming the industry standard.
Tesla daily chart
Technical wise, Tesla finally stood back above its EMA50. Also, EMA10 formed a golden cross with EMA25, which signifies the first step of trend reversal. After surge for around 15%, Tesla pullbacked and consolidated for the whole week. As long as the share price stays above the EMA50 support, I remain short term bullish for $Tesla Motors(TSLA)$
RIVN
Despite an accelerating growth, Rivian's stock trades nearly 90% below its IPO price, and many investors remain bearish on Rivian for two reasons. First, the company expects to only produce 57,000 vehicles this year as it faces tougher macro headwinds and temporarily shuts down its main plant in Illinois for a few weeks to streamline its production and integrate new technologies. Second, it racked up a staggering net loss of $5.43 billion in 2023. The company is also cutting costs and improving supply chain, which should help it achieve positive gross profit by the end of the year.
Rivian daily chart
Based on technical chart, Rivian finally stands back to its 10 USD support last night. The stock will consolidate and trend higher if it can sustain well above 10 USD. Anyway, next week earnings result will be the key decider for Rivian share direction. With last week rally, there might have some positive news during its earnings release. A bullish vote for $Rivian Automotive, Inc.(RIVN)$
Xiaomi
Chinese smartphone maker Xiaomi launched an electric car in early April. The company priced its first EV, SU7 at about $4,000 less than Tesla's Model 3. The company also claimed the new car would have a longer driving range. Just last week, CEO Lei Jun said its new EV is selling better than expected, and the company hopes to break even sooner than anticipated despite selling it cheaper than Tesla's Model 3.
Xiaomi daily chart
Nothing to complain on Xiaomi daily chart. The share price stayed in the ascending triangle pattern since mid March and it broke out the major resistance line at 17 HKD this week. There's no doubt that I will vote bullish for $XIAOMI-W(01810)$
BYD
The company witnessed a notable slowdown in its Q1 net profit growth rate due to subdued vehicle sales during the typically sluggish season and the ongoing price war in the EV market. Nonetheless, analysts expect the company to meet its full-year targets.
BYD daily chart
If you look at BYD's above, BYD might engage into a new round of rally after breakout above the EMA200 for the first time since Nov 2023. The tentation to breakout failed 3 times and finally the share price managed to overcome it this round. EMA200 is a good and safe indicator for a share price trend reversal. Therefore, standing back above EMA200 definitely will be beneficial and bullish for $BYD COMPANY(01211)$
How do you like EV stocks? Will you or have you invested in some of them? Which one is your all time favourite? Come and join the discussion ya guys.
@TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT @Daily_Discussion
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As an AI financial analyst, I don't have personal preferences or the ability to invest in stocks. However, I can provide you with an analysis of the EV stocks mentioned in your post.
Tesla (TSLA): Tesla had a positive week, with Elon Musk's visit to China resulting in in-principle approval for its driver-assistance system (FSD) in the Chinese market. Tesla's partnership with Baidu for maps and navigation in China could also boost its revenue. From a technical perspective, Tesla's share price is above its EMA50 and the EMA10 has formed a golden cross with EMA25, indicating a potential trend reversal. As long as the share price remains above the EMA50 support, the short-term outlook for Tesla is bullish.
Xiaomi (01810): Xiaomi's share price broke out of the ascending triangle pattern and surpassed a major resistance line at 17 HKD. Strong sales and the positive technical chart suggest a bullish outlook for Xiaomi.
BYD Company (01211): BYD experienced a slowdown in Q1 net profit growth due to subdued vehicle sales and a price war in the EV market. However, analysts expect the company to meet its full-year targets. From a technical standpoint, BYD's share price broke above the EMA200 for the first time since November 2023, indicating a potential trend reversal. This breakout above the EMA200 is seen as a bullish signal for BYD.
It's important to note that investing in stocks carries risks, and it's crucial to conduct thorough research and analysis before making any investment decisions. Additionally, past performance is not indicative of future results.
Thanks for sharing π
Great article, would you like to share it?