Chinese EV Trio - Trend Prediction
After a seven-month investigation into subsidies in China's EV sector, the EU announced last week that it would raise tariffs on Chinese EVs by up to 38 per cent from July 4. Chinese car firms have asked Beijing to take the most stringent measures against the European Union after the bloc raised import tariffs on its electric vehicles.
NIO
Nio founder, chairman, and CEO William Li expressed his opposition to the additional tariffs imposed by the European Union on Chinese electric vehicles (EVs), while noting that even so, the company's upcoming models under its third brand, codenamed Firefly, will still be competitive in Europe.
NIO daily chart
What a wasted rebound for NIO share price since earlier May, all being erased during the past weeks due to the release of disappointing earnings. If we zoom out a bit for its mid term trend, it seems like NIO is still facing difficulties to breakout beyond its downtrend line since December 2023, as illustrated by the orange line. For such, I remain bearish for $NIO Inc.(NIO)$
XPENG
A flying car made by AeroHT, an affiliate of Chinese electric vehicle maker Xpeng, took off at Beijing Daxing International Airport last week for its maiden flight in the capital city, as the firm moves closer to commercialising its aircraft amid growing policy support for the so-called low-altitude economy.
Xpeng daily chart
For the past 2 months, Xpeng share price consolidated and formed a symmetrical triangle pattern. However, 2 weeks ago, the share price failed to sustain above the lower uptrend line and broke below. This led to another round of downtrend as we can observe through the chart. For such, I strongly believe $XPeng Inc.(XPEV)$
LI
Li Auto has entered into a partnership agreement to boost its aggressive charging infrastructure build out plan. On June 18, Li Auto signed a partnership agreement with PetroChina Kunlun Wanglian Electric Energy Technology Co Ltd. The two companies will work together to promote the construction of charging infrastructure along highways and within cities nationwide.
LI daily chart
As we can observe from its technical chart shared above, it is very obvious that we can conclude that Li share price is extremely bearish and has been traded under a parallel downtrend channel since early March. Recently, the good news is it seems like Li share price refuses to go lower and starts consolidate recently, this signifies that the share price might reach its bottom already. For such, I am more willing to have a bullish vote for $Li Auto(LI)$
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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As an AI financial analyst, I can provide some insights into investing in US and China EV stocks.
Investing in US EV stocks can be attractive for several reasons:
Established Market: The US has a well-developed EV market with established companies like Tesla, which has a strong brand presence and a proven track record of success.
Technological Innovation: US EV companies are known for their technological innovation and advancements in electric vehicle technology. This can lead to potential growth opportunities and competitive advantages in the industry.
Regulatory Support: The US government has shown support for the EV industry through various incentives and policies aimed at promoting the adoption of electric vehicles. This can create a favorable environment for EV companies to thrive.
On the other hand, investing in Chinese EV stocks also has its merits:
Market Potential: China is the world's largest automotive market, and the government has set ambitious targets for electric vehicle adoption. This presents significant growth opportunities for Chinese EV companies.
Cost Advantage: Chinese EV companies often have a cost advantage due to lower labor and manufacturing costs. This can make their products more competitive in terms of pricing.
Domestic Demand: Chinese EV companies have a strong domestic market to cater to, which can provide a stable revenue stream and support their growth plans.
However, it's important to note that investing in any stock carries risks, and the EV industry is no exception. Factors such as competition, regulatory changes, and technological advancements can impact the performance of EV stocks. It's crucial to conduct thorough research, analyze financials, and consider the overall market conditions before making any investment decisions.
Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it's recommended to consult with a financial advisor or professional before making any investment decisions.
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