Tesla and EV Leaders in Market
Used electric vehicle prices in the United States dropped more than 20% in the last year, opening the door for buyers once deterred by high costs. The drop results from a few factors, beginning with a notable uptick in EV manufacturing that has affected supply. But as the demand for new EVs fell short of expectations, manufacturers slashed prices to compete for market space, while a host of tax credits and incentives from the Biden administration's Inflation Reduction Act pushed new EV prices down even further. Let's look at the trend of market EV leaders.
TESLA
The European Commission has significantly reduced the import duty on Tesla vehicles manufactured in China, potentially paving the way for a surge in sales across the region. Chinese EV exports to the EU experienced a sharp decline in response to the proposed tariffs.
Tesla daily chart
Let's look at the Tesla chart shown above, following disappointing earnings results, Tesla share price pulled back significantly this week towards its EMA200 support and even failed to sustain above this critical support. After that, we observed a symmetrical triangle pattern and Tesla successfully broke up. Moreover, the share price managed to stand back above all the EMA lines, especially the green EMA200! This week pullback was not very harsh and considered as healthy retracement. As long as the share price stays well above its EMA200, I remain my bullish vote for Tesla $Tesla Motors(TSLA)$
BYD
BYD has rolled out the 2025 model year update to its all-electric Song Plus EV, less than half a year after the SUV's predecessor was launched.BYD this week announced the launch of the 2025 Song Plus EV, which keeps the starting price at RMB 149,800 but with upgraded features.
BYD daily chart
For BYD, since 2024, the share price stays within the uptrend parallel channel as illustrated in the figure above. However recently, BYD share price broke below this uptrend channel which was an alarming sign. This might represent the beginning of a trend reversal for BYD. Few weeks ago, the share price seemed to struggle somewhere nearby EMA200 support but managed to stand back above it recently. Similar to all my other analysis, I remain bullish to the underlying stock $BYD COMPANY(01211)$
XIAOMI
Xiaomi is willing to grow its nascent electric vehicle arm at the expense of profits for now, as it angles to join Tesla and BYD among the world's biggest automakers over the next decade or two. The company, known for making everything from smartphones to rice cookers and luggage, is prioritizing growth of the EV business over margins for now.
Xiaomi daily chart
After a massive rally since March 2024, Xiaomi experienced a bearish movement after May 2024. The pullback was beyond my prediction until it headed towards EMA200 support recently. The good news is Xiaomi share price seems to find its short term bottom at around 16 HKD. Its share price recently rebounded from EMA200 and 2 weeks ago, Xiaomi broke out from its 3 months downtrend line and curved upwards. The reversal trend was further boosted by its impressive earnings this week. With all these positive indications, I believe Xiaomi $XIAOMI-W(01810)$
Do you prefer the older classic leader Tesla or the new Chinese EV leaders like BYD or Xiaomi?
@TigerStars @TigerStars @MillionaireTiger @TigerGPT @Daily_Discussion @CaptainTiger
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As an AI financial analyst, I don't have personal preferences. However, I can provide you with some insights on Tesla and the Chinese EV leaders like BYD and Xiaomi.
Tesla (TSLA) has been a prominent player in the EV market for many years and has established itself as a global leader in electric vehicles. Despite recent challenges, such as disappointing earnings results, Tesla remains a dominant force in the industry. The European Commission's reduction of import duty on Tesla vehicles manufactured in China is expected to boost sales in the region, further solidifying Tesla's position in the market.
On the other hand, Chinese EV companies like BYD and Xiaomi have been making significant strides in the electric vehicle space. BYD, a company that has been in the EV market for a longer time, is known for its comprehensive product portfolio, ranging from electric buses to passenger cars. Xiaomi, a well-known technology company, recently entered the EV market and has expressed its ambition to become one of the world's biggest automakers.
Both BYD and Xiaomi have their own unique strengths and growth strategies. BYD's extensive experience in the EV market and diverse product offerings give it a competitive edge. Xiaomi, on the other hand, benefits from its brand recognition, technological expertise, and strong financial position.
Ultimately, the choice between Tesla and the Chinese EV leaders depends on individual investment goals, risk tolerance, and research. It's essential to thoroughly analyze each company's financials, growth prospects, competitive advantages, and market trends before making any investment decisions.
Please note that the information provided is for reference purposes only and should not be considered as investment advice. Investing in stocks, especially in the volatile EV market, carries risks, and it's important to conduct thorough research and seek professional advice before making any investment decisions.
Reference:
Chinese EV exports fell sharply to the EU