5 Best Chinese Electric Car (EV) Stocks
Chinese EV stocks are some of the best long-term value buys for high-growth investors.
Top Chinese Electric Car Stocks
In this article, we’ll go over the best Chinese EV stocks to buy. Here is a list of my Chinese electric car stock recommendations:
- Nio (NASDAQ: Nio)
- Li Auto (NASDAQ: Li)
- Xpeng (NASDAQ: SPEV)
- Kandi (NASDAQ: KNDI)
- BYD (OTCMKTS: BYDDF)
Nio (NASDAQ: NIO)
Nio is the largest electric car company in China by market cap. Billionaire CEO William Li founded Nio in 2014 to create a forward-thinking electric vehicle company that runs on incredible software and technology.
Many investors considered Nio the “Tesla of China” even though Tesla generates nearly 50% of its EV sales from its Shanghai Gigafactory.
The company sells 4 electric EVs (ES8, ES6, EC6, and ET7) and has grown its footprint in the Chinese EV market.
In Q3 2021. Nio delivered a record-setting 24,349 EVs (Up 100% YoY) and generated $1.3 billion in quarterly revenue.
Nio deliveries are projected for another record quarter with 23,500 and 25,500 vehicles deliveries for Q4 2021.
Nio stands out amongst its peers with its attractive vehicles and cost-saving “battery swap” technology. Customers can “rent” their battery and swap it in the future to help lower the cost of the initial EV purchase.
When your Nio battery runs low, Nio customers can drive to a battery swap station and replace the old battery with a newly charged one. The whole revolutionary process takes just 3 minutes to complete.
Nio has a long way to go because the company has only sold a cumulative 88k vehicles since inception.
At about 1/10th of Tesla’s production, Nio has ambitious plans to expand to Europe as well as America in the future.
It’s my favorite Chinese EV stock and looks attractive at these current price levels.
Li Auto (NASdAQ: Li)
Li Auto is another Chinese EV maker that seeks a growing market share of the Chinese electric car market.
Xpeng (NASDAQ: XPEV)
Xpeng sells 2 electric vehicles called the G3 SUV and the P7 four-door sedan, which are direct competitors to the Tesla Model Y SUV and Model 3 sedan.
The company is rapidly increasing deliveries at a robust pace with 2,223 g3 and p7 deliveries in February 2021 alone. Combined January and February deliveries equal a 557% YoY increase.
Xpeng continues to build out its supercharger network like Tesla and operates 135 branded super charging stations as of Q3 2020.
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What makes Xpeng unique is its focus on smart EV technology, self-driving, and its fast growing super charging station networks.
XPEV stock currently trades at a P/S ratio of 20 that’s very similar to Tesla. The company will report Q4 2020 and full year results on March 8th and I’ll be sure to update this article with a more accurate valuation of the company.
At just a $21 billion market cap, Xpeng looks undervalued as a long term investment.
Kandi (NASDAQ: KNDI)
BYD (OTCMKTS: BYDDF)
Are Chinese EV Stocks a Good Investment?
China is the world’s #1 electric car market due to its massive population and economy. However, China faces a lot of environmental challenges due to its huge population.
Smog and dust particles fill the air and can cause health problems. In major cities like Beijing, the air is so polluted that it’s the equivalent of smoking 40 cigarettes a day.
Can EVs save China from its dangerous pollution problem? EVs fight pollution from the environment since ICE vehicles cause around 80% of a country’s carbon emissions.
Chinese President Xi Jinping set a goal to hit peak carbon emissions by 2030 and zero Carbon emissions by 2060.
Moving China from ICE vehicles to EVs is one of the best ways for China to reduce its carbon emissions and improve its green footprint.
That means Chinese EV makers will receive a lot of demand for their vehicles once more Chinese consumers make the switch.
EV sales currently make up 19% of the overall auto market in China and total EV sales reached a whopping 320,000 units in October 2021.
EV sales will continue growing and it’s only a matter of time until EV overtakes ICE vehicles in China.
