Tesla is not the only electric vehicle (EV) manufacturer to have seen an explosive uptick in its inventory this year.
Shares in Tesla’s Chinese competition have surpassed the global automobile index, as investors’ sentiments for electric vehicle stocks have become increasingly positive over the following year, and while some Chinese electric car brands have announced primary financing milestones.
Despite the pandemic, the increase in sales of electric vehicles in China, the world’s largest automotive market, was larger than the expansion of the global automotive market last month, electric cars still account for a small portion of china’s total vehicle sales.
Tesla and the race to “next Tesla” fuel an inventory rally from Chinese electric vehicle manufacturers, which in turn has led to an increase in fundraising this year, adding to the U.S. inventory market, Joan Escribane Chiu of the Wall Street Journal. .
The uptick in Chinese stocks occurs when Tesla has noticed an explosive gain in its percentage value over the following year. At the end of Thursday, Tesla’s percentages have risen 287% since the start of the year and 652% since August last year.
In the global electric vehicle market, adding China, Tesla is ahead of its competition and is the best. Some analysts say that some Chinese electric vehicle manufacturers, competing to compete with Tesla in the world’s largest automotive market, may simply be the “China Tesla.”
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Nio, for example, may simply be the “China Tesla,” Piper Sandler’s Alexander Potter wrote in a note this week, published by Business Insider.
Ari Wald, head of technical research at Oppenheimer, told CNBC earlier this month about Nio that “inventory has been consolidated since its peak in July and I believe this consolidation allows overbought situations in the past to decrease.”
Nio’s American Depositary Receipts (ADRs) traded in New York have increased by 232% since the start of the year and 374% for a year.
Earlier this week, Nio reported an increase in vehicle deliveries at the time of the quarter to 10,331, nearly three times the number of cars delivered at the time of the 2019 quarter. Nio guided even higher deliveries in the third quarter, indicating that the company expects it to be required for its electric vehicles to continue to grow.
“We, that new call for penetration in China, could simply increase from there, from 5% in 2019 to 14% in 2025,” said Nick Lai, an analyst at J.P. Morgan, in a note published through MarketWatch, commenting on Nio’s performance.
Li Auto plans to launch a full-end high-end electric SUV in 2022 and then expand its product line by the emergence of new vehicles, medium and compact SUV models, the company said in a document submitted to the SEC.
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Since its U.S. market debut at the end of July, Li Auto shares have risen by more than 30%.
This week, Chinese automaker Xpeng Motors filed an initial public offering on the New York Stock Exchange.
Kandi’s inventories on the NASDAQ have increased by more than one hundred percent in a month. The announcement of supply in the U.S. market prompted the uptick in Kandi’s inventories.
As Chinese electric vehicle brands rush to compete with Tesla, whether in China and outside China, some investors and analysts have learned that the electric vehicle revolution is gaining momentum. Whether someone can beat Tesla in terms of sales or logo recognition, the inventory market is pleased with electric vehicle inventories.
By Tsvetana Paraskova for Oilprice.com
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