Chinese EV Stocks Li Auto, BYD, Nio To Benefit From Rebound: Analyst
Macquarie Equity Research issued a positive outlook for the short-term Chinese EV market following a $142 billion (one trillion yuan) stimulus package. Analysts listed several positive catalysts, including new model launches, expanded margins due to operating leverage, the end of subsidies pulling demand forward, reduced discounting pressures and clarity on potential European Union (EU) tariffs, which had previously been uncertain for Chinese automakers.
The firm sees BYD (OTC:BYDDF) and NIO Inc – ADR (NYSE:NIO) benefiting from the shift. BYD led the charge, selling 419,400 units in September, marking a 46% year-over-year increase. The company’s aggressive expansion overseas surprised the EV market.
Launching new models, particularly those based on its highly efficient DM-i hybrid technology, should help sustain its growth momentum in the coming months. Macquarie remains optimistic and has …
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