Chinese EV Trio πππ - Technical Analysis
The United States plan to levy tariffs on imports from China's emerging industries, including a potential 100% tariff on Chinese electric vehicles (EV). Experts argue that the US' protective measures reveal its defensive mindset and its struggles in competing with China's new energy industries.
NIO
On Wednesday, 15 May, NIO launched the first vehicle in its new lower-priced brand Onvo which aims to compete there with Tesla's Model Y, the worldβs best-selling EV. Nio unveiled the Onvo L60 SUV with a sticker price starting from 219,900 yuan, 12% below the price of Tesla's Model Y which starts at 249,900 yuan in China. Nio plans to start delivery of the Onvo L60 in September.
NIO daily chart
As we can observe from the chart above, the stock started well early of the week and erased all its gain towards the end of the week. Well, technical wise, everything seems to be still quite healthy for NIO. The share price stays well above the EMA50 and EMA25 trend line. Moreover, EMA25 is pretty close with EMA50 and I believe a golden cross should be expected to happen pretty soon. For such, I remain bullish with Nio $NIO Inc.(NIO)$
XPENG
This week, Xpeng has officially announced its entry into Hong Kong, as the electric-vehicle maker doubles down on its expansion plans along with its domestic peers. Also CNBC reported that, Xpeng AeroHT, an affilaite of Xpeng, will aim to deliver its flying car to customers in 2026.
XPENG daily chart
For Xpeng, the chart is pretty similar as compared dto Nio. Currently, the stock is challenging it's EMA50 resistant line and try to break above it. For me, I believe next week earnings result will be the key decider of the share price direction. I vote bullish for Xpeng $XPeng Inc.(XPEV)$
LI AUTO
Li Auto is reportedly undergoing massive layoffs, with sales falling short of expectations. The company is in the midst of a new round of layoffs that could involve more than 18% of its workforce overall. The company delivered 25,787 vehicles in April, up 0.41 percent year-on-year but down 11.03 percent from March.
LI daily chart
Technical wise, as compared to Nio and Xpeng, Li Auto has the weakest chart for the moment. The share price stays well below all the EMA trend lines, as we can see from the chart above. Same as Xpeng, Li Auto will release its earnings next week and the results will be critical towards Li's share price. However, based on technical analysis, all indicators show a bearish sign for Li Auto $Li Auto(LI)$
Do you like to invest in US or China EV stocks? What are the reasons behind? Come and join the discussion with us.
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Based on the technical analysis provided, here is a summary of the three Chinese EV stocks:
NIO (NIO):
The stock started the week strong but erased its gains towards the end.
The share price is currently above the EMA50 and EMA25 trend lines.
A golden cross (EMA25 crossing above EMA50) is expected to happen soon.
The upcoming earnings result will be a key factor in determining the share price direction.
The analyst remains bullish on NIO.
XPeng (XPEV):
The share price of XPeng seems to have formed a higher low at the current price.
The analyst believes the share price is undervalued.
The upcoming earnings result will also play a crucial role in determining the share price direction.
The analyst votes bullish for XPeng.
Li Auto (LI):
Li Auto is reportedly undergoing layoffs due to sales falling short of expectations.
The share price is below all the EMA trend lines, indicating a bearish sign.
The upcoming earnings result will be critical for Li Auto's share price.
Based on technical analysis, all indicators show a bearish sign for Li Auto.
As for investing in US or China EV stocks, it ultimately depends on individual preferences and investment strategies. Here are some factors to consider:
Investing in US EV stocks:
The US EV market is highly competitive, with companies like Tesla leading the industry.
US EV companies have a strong presence in the global market and benefit from established infrastructure and consumer demand.
Regulatory policies and government support for EVs in the US can provide stability and growth opportunities for US EV stocks.
Investing in China EV stocks:
China is the world's largest EV market, with a growing demand for electric vehicles.
Chinese EV companies have been rapidly expanding and gaining market share both domestically and internationally.
Government policies and incentives in China support the development and adoption of EVs, which can benefit Chinese EV stocks.
However, investing in Chinese stocks may involve additional risks, such as regulatory changes and geopolitical tensions.
It is important to conduct thorough research, analyze the financial health and growth prospects of individual companies, and consider the overall market conditions before making any investment decisions.
Note: The information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it is recommended to consult with a financial advisor before making any investment decisions.