Chinese Electric Vehicles Stocks Are On The Rise, Are They On Your Watchlist?
The green energy movement has lit a fire for electric vehicle stocks. While much of the hype started after Tesla (TSLA Stock Report) climbed to a record high valuation after announcing a 5-for-1 stock split. Other rivals such as Nikola (NKLA Stock Report) have climbed more than 100% since going public through the special purpose acquisition company pathway. That said, do you believe that this year will be the year where top electric vehicles stocks go mainstream? And if you believe this is the start of the automotive revolution, it could be the most exciting time to be an investor in this space.
Gone were the days when Tesla was the only pure EV play when you want to invest in this space. In fact today, new players continue to enter the space. And many of them have the potential to be a game-changer for investors hoping for triple-digit percentages gains over this decade. More specifically, more EV players from China are making their presence felt on the US stock market. The upcoming listing of Xpeng in New York couldn’t come at a better time. It is, after all, tapping on the spillover effect from Tesla’s meteoric rise amid a strong appetite for EV stocks. With all that in mind, would you consider adding these Chinese EV stocks to your watchlist?
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Top EV Stocks To Buy [Or Sell] Right Now Over The Next Decade: Nio Inc
Shares of one of the most promising Chinese electric vehicle company, Nio Inc (NIO Stock Report), have been on a winning streak this year. This comes after strong sales during the second quarter. Furthermore, the company achieved a positive operating margin for the first time. This is laying a strong foundation for prospective investors to invest comfortably.
The newly hired computer vision expert, Shaoqing Ren is set to lead the self-driving development efforts. The new position is to replace former Tesla engineer, Jamie Carlson, who led Nio’s autonomous vehicle technology efforts from 2016.
NIO’s autonomous driving R&D efforts seemed to slow down amid the company’s cash crunch in the second half of 2019 and early 2020. However, recall that the company has secured $1 billion in new funding secured from the Hefei government not long ago. That provides a sizable amount of resources for Ren and his team to work on. Given that China’s auto market is especially competitive, every bit of resource counts in helping the company secure its lead.
Top EV Stocks To Buy [Or Sell] Right Now Over The Next Decade: Li Auto
Next up, shares of newly listed Li Auto (LI Stock Report) soared on Monday. This came after Goldman Sachs (GS Stock Report) and Bernstein gave a “Buy” rating on LI stock. Following the listing, the company’s shares rose by more than 12% over the course of the week before dropping to all-time lows in mid-August.
As opposed to the US where few pure electric vehicle manufacturers exist to supply the market demand, China’s industry is a different story. It is the largest electric vehicle market in the world. Local companies have been capitalizing on the country’s wealth and those keen to make an environmental statement. Li Auto entered the EV space with the backing of Bytedance (the owner of TikTok).
With a strong focus on “premium” electric vehicles, the company could hit the sweet spot in the world’s largest electric vehicle market. With that in mind, would LI stock be attractive enough for growth investors who want to enjoy the growth of the industry but paying only a fraction of TSLA stock price?
Top EV Stocks To Buy [Or Sell] Right Now Over The Next Decade: Kandi Technologies
Last on the list, Kandi Technologies (KNDI Stock Report) is targeting a different population in the market. Nio and Li Auto may prefer to target the premium electric vehicle market. But Kandi is offering the most affordable electric vehicle in the US market. With incentives, the electric vehicles will start as low as $13,000, something not attainable among the “premium” EV manufacturers.
“We are making electric cars affordable, accessible. When you look at other current electric cars in the market right now, I think either their prices are too high or they’re not available. You have to wait too long to get the car,” said CEO of Kandi America Johnny Tai.
The two Kandi models, namely the K23 and K27, are small, affordable electric vehicles intended for urban commuter vehicles. Bear in mind these EVs aren’t Teslas, as reflected from their pricing and design. Despite seeing a strong rally at the end of July, KNDI stocks seem to be losing steam. That said, if the bearish trends continue, I wouldn’t be surprised if the shares trade near their IPO level again in the near future. When that happens, would you include KNDI stock on your watchlist?