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Monthly figures from Li Auto and BYD (BYDDF) are expected later this week as well.
EV Stocks Fall
Li Auto stock reversed lower to drop 1.7% in the stock market today. Nio stock fell 7%. Both stocks have strong ratings from IBD. Nio’s Composite Rating is 96. Li Auto’s is 95. The 50-day lines for both stocks have swept higher this year.
Xpeng stock sank 7.5%. XPEV has an 87 Composite Rating.
Among other EV stocks, Tesla (TSLA) added 2.8%. TSLA stock will join the S&P 500 index in one big step before Dec. 21, S&P Dow Jones Indices announced late Monday. On Monday, China gave Tesla the OK to sell its Model Y SUVs in the nation.
Goldman’s Takes On Li Auto, Nio Stock
Goldman’s EV stocks analysts said they believed Li Auto was “differentiating itself from the broader Chinese auto-making industry by envisioning and creating compelling EV consumer experiences — and showing a willingness to take on the risk of unconventional technologies and act innovatively.”
They added that the company’s Li One vehicle, launched last year, was the bestselling electric SUV in China. The analysts said they expected Li Auto to use the Li One as a platform for offering autonomous driving, among other things, that would help drive longer-term adoption.
For Nio, the EV stocks analysts said their downgrade to sell, in July, was based on a belief that “the share price at the time reflected over-optimism given no substantial changes to volume/profit expectations.”
“In hindsight,” the analysts continued, “we underestimated the benefits to Nio from: (1) powertrain breakthroughs, particularly with the cell-to-pack/blade large cell technologies; (2) the introduction of Nio’s battery as a service (BaaS) program, which has significantly expanded Nio’s addressable market; and (3) regulatory incentives that turned around EV market demand from an ongoing decline.”