• Share prices of Chinese EV makers, including NYSE NIO at https://www.webull.com/quote/nyse-nio, fell in February and remained flat in March.
• A temporary production halt has been imposed on NIO due to an industry-wide shortage of chips. Still, the lengthier period viewpoint remains positive due to reassuring administrative strategies into spotless get-up-and-go vehicles.
Has the luster of EV names faded?
NIO Vs. Tesla: Which Is The Better Investment Today was published just over two months ago. Despite this, the two most well-known EV names have lost 37.3 percent and 27.2 percent, respectively, in that period. “The identical multiples for the two shares, despite Tesla screening more possible and with a global brand mark merit, designate that Tesla remains underestimated comparative to NIO, even after its grander share price success in the past months,” I argued in the comparative piece.
Tesla, Inc. (TSLA) shareholders can rest easy knowing that the “horse” they’re betting on is surviving the market’s onslaught on electric vehicle manufacturers better than Chinese EV creators like NIO Limited (NIO). It’s no pleasure, of course, to watch our assets lose value, even though they’re doing so at a slower rate than their peers.
Chinese EVs Are Making Tesla Look Cheap, which I predicted in late November, has come true in less than four months. XPeng, Inc. (XPEV) and Li Auto, Inc. (LI), two recent Chinese electric vehicle entrants, have seen their stock prices drop 45.3 percent and 34.2 percent, respectively.
To be sure, market participants are not taking a “US vs. China” stance. EV manufacturers in the United States have also underperformed the market leader, Tesla, by a significant margin. Work horse Group, Inc. (WKHS) has yet to recover from its February collapse, with its stock down 67.5 percent since then
Work horse did receive a raise in views on each of the three occasions the well was followed. Between February 24 and March 5, 2021, Cathie Wood’s ARK Invest added the stock to the ARK Autonomous Technology & Robotics ETF (ARKQ). However, as the price chart shows, the efforts were in vain in raising the stock significantly.
This demonstrates that investors are becoming more selective. Gone are the days where they get excited about every electric vehicle manufacturer and rush into EV stocks in the hopes of catching the next Tesla. A correction, as the saying goes, is always good for a bull market. The end of the ICE age (internal combustion engine) is unavoidable, so the question is which stock to invest in to ride the EV and autonomous driving surge.
Nonetheless, given the recent drop in NIO, China’s leading electric vehicle maker, it’s worth considering whether a purchase is warranted. Before investing, you can check nasdaq fcel at https://www.webull.com/quote/nasdaq-fcel.