Chinese EV Trio πππ Trend
EV sales remain weak for May. As reported, major electric vehicle makers mostly saw vehicle insurance registrations in China fall last week, with a major holiday taking its toll early May. Let's look into the chart trend for Chinese EV trio, Nio Xpeng and Li!
NIO
Chinese electric car company Nio announced last Thursday that it will launch its lower-priced brand called Onvo on May 15. Onvo's first model, the Onvo L60, will take on the Tesla Model Y, and will primarily target the market for smart, family-centric pure-play EV market in the RMB 250,000 ($34,600) class.
Nio daily chart
For Nio, the share price pulled back like most of the EV companies after rallied since mid April. So far, this round of correction is still healthy as long as it stands firm above 5 USD. If you look at the highlighted circle in Orange, it shows that the share price pulled back to the nearest trend line support which is EMA10 and EMA50 in this case. The last defence will be EMA25 in red colour. Usually, with this pattern, the stock $NIO Inc.(NIO)$
XPENG
Similar to Nio Onvo, Xpeng, also plans to release a sub-brand called Mona in the next two or three months.
Xpeng has also announced its entry into Australia, through a partnership with Australian distributor TrueEV, which will bring Xpeng's EVs to local consumers. Xpeng has increased its focus on overseas markets this year, as competition in the domestic market grows red hot.
Xpeng daily chart
As compared to Nio, Xpeng has a weaker chart. The share price still under a short term downtrend resistance. I expect the stock $XPeng Inc.(XPEV)$
LI AUTO
Since Li Auto introduced the L6 in mid-April, its latest model, orders have soared to 41,000. L6 is a premium large SUV that offers spacious interior and excellent configurations. Its standard first-row seats come with a rich array of features, including ventilation, heating, and seat massage with ten acupressure points. The driver enjoys complete control with an adjustable electric steering wheel equipped with heating and grip sensors.
LI daily chart
Lastly, for Li Auto, the candle pattern is very similar and close to Xpeng. Last night's pullback sent the stock towards its neckline support at 26.49 USD. Similar bullish prediction for Li Auto, purely based on technical analysis and expect a short term rebound $Li Auto(LI)$
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NIO Inc. (NIO)
Business and Industry: NIO is a Chinese electric car company that designs, manufactures, and sells smart electric vehicles. The company focuses on developing advanced technologies such as autonomous driving and artificial intelligence. The electric vehicle industry in China is expected to grow rapidly in the coming years, driven by government support and increasing consumer demand for clean energy vehicles.
Latest Earnings and Forecast: NIO's latest earnings report showed a loss per share of -1.51 CNY in the fourth quarter of 2023. The company has provided earnings forecasts for the future, with a projected loss per share of -7.81 CNY for the full year 2024. The forecast indicates a challenging period for NIO in terms of profitability.
Recent Trend: NIO's stock price has experienced a pullback after a rally since mid-April. The current correction is considered healthy as long as the stock remains above the support level of 5 USD. The stock has pulled back to the nearest trend line support, represented by the EMA10 and EMA50 indicators. The next support level to watch is the EMA25 indicator. Based on this pattern, there is a higher probability of a rebound in the stock price next week.
Analyst Viewpoints: Analysts have provided a target price range for NIO, with a mean estimate of 13.96 USD, a low estimate of 7.0 USD, and a high estimate of 28.0 USD. The analyst recommendation for NIO is mixed, with 7 buy recommendations, 11 hold recommendations, 1 underperform recommendation, and 1 sell recommendation.
XPeng Inc. (XPEV)
Business and Industry: XPeng is another Chinese electric vehicle manufacturer that focuses on the development and production of smart electric vehicles. The company aims to provide innovative and high-quality electric vehicles to meet the growing demand in China's EV market.
Latest Earnings and Forecast: XPeng's latest earnings report showed a loss per share of -3.18 CNY in the fourth quarter of 2023. The company has provided earnings forecasts, projecting a loss per share of -7.69 CNY for the full year 2024. The forecast indicates a challenging period for XPeng in terms of profitability.
Recent Trend: XPeng's stock price is currently trading near the neckline support level at around 7.38 USD. If the stock fails to hold this level next week, it could experience another decline. The stock's trend is currently bearish, and investors should closely monitor the support level for potential further downside.
Analyst Viewpoints: Analysts have provided a target price range for XPeng, with a mean estimate of 9.19 USD, a low estimate of 4.0 USD, and a high estimate of 21.8 USD. The analyst recommendation for XPeng is mixed, with 4 recommendations, 10 buy recommendations, 12 hold recommendations, and 2 underperform recommendations.
Li Auto (LI)
Business and Industry: Li Auto is a Chinese electric vehicle manufacturer that specializes in the development and production of premium electric SUVs. The company's vehicles offer spacious interiors and advanced features, targeting the premium segment of the EV market.
Latest Earnings and Forecast: Li Auto's latest earnings report showed earnings per share of 5.72 CNY in the fourth quarter of 2023. The company has provided earnings forecasts, projecting earnings per share of 12.52 CNY for the full year 2024. The forecast indicates potential growth for Li Auto in terms of profitability.
Recent Trend: Li Auto's stock price has pulled back towards the neckline support level at 26.49 USD. This support level is crucial for the stock's short-term rebound potential. However, the overall trend for Li Auto remains weak and bearish in the mid-term.
Analyst Viewpoints: Analysts have provided a target price range for Li Auto, with a mean estimate of 60.05 USD, a low estimate of 32.0 USD, and a high estimate of 122.0 USD. The analyst recommendation for Li Auto is mixed, with 3 recommendations, 7 buy recommendations, and 8 hold recommendations.
Please note that the above analysis is based on technical analysis and analyst forecasts. It is important to conduct thorough research and consider various factors before making investment decisions. Investing in EV stocks, whether in the US or China, carries inherent risks, and market fluctuations can impact stock prices. It is advisable to consult with a financial advisor or do further research before making any investment decisions.
Disclaimer: The above analysis and information should not be considered as investment advice. The analysis is based on publicly available information and the author's interpretation of the data. The author does not guarantee the accuracy or completeness of the information. Investing in stocks involves risks, and it is important to conduct thorough research and consider your own risk tolerance before making investment decisions.