To The Moon

I expect China to react tit-for-tat to the US' latest tariffs on electric vehicles, and $Tesla Motors(TSLA)$   may be caught in the crossfire, as the leading EV maker struggles to overcome slowing demands and disappointing business outlook and counts China as a major market.

Likewise, there's also a concentration risk with $Rivian Automotive, Inc.(RIVN)$  's narrow customer base, as the EV maker is heavily dependent on its investor and sponsor Amazon which unfortunately has fallen short of its orders and failed to live up to its commitment to electrify its delivery fleet. The EV startup has so far not yet been able to generate sufficient operating cash flows and is projected to have only sufficient cash to see its operations through another year, so that it is under immense pressure to achieve profitability sooner than later.

A patchy economic recovery in China and looming deflation has led to softening domestic demands for new electric vehicles, while prevailing price wars among the EV makers to capture and defend market share has only led to an industry-wide shrinking gross margin, that has weighed on the stock prices of the Chinese EV trio $NIO Inc.(NIO)$  , $XPeng Inc.(XPEV)$  

and $Li Auto(LI)$  . Adding to their sorrows is a growing number of conventional car makers jumping onto the EV bandwagon, resulting in abundant choices and excess supply in the market. Until the trio find enough buyers to sustain growth, the weak demands will continue to weigh on their stock prices.  

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