It’s the first trading day of the new year! Equity markets appear to be on jitter again as early trading sessions saw big swing. Ultimately, market starts to moon as many growth stocks start to join the rally. Let’s dive into the EV sector today.
🍏Tesla: Riding high on Delivery💎
The electric vehicle giant delivered a massive 308,600 cars for the fourth quarter. This exceeds the highest estimate of analysts and is set to keep the bull momentum going for the stock.
It is a much needed good news after the EV company had to recall a considerable volume of cars recently. Its core factories in Shanghai and Fremont will have an annual production capacity of 1.2 million vehicles. In addition, we expect Tesla to announce two other assembly plants to commence production in early 2022 in Texas and Berlin.
Pika World maintains long term exposure to Tesla.
🪜Chinese EV companies had a good delivery too🏀
The key three Chinese electric companies, Nio, Li Auto and XPeng, all sent out significant delivery figures that reflect a growing appetite for EV cars in China. However, XPeng is the clear leader as it delivered a record 16,000 vehicles, which is a monthly record. In 2021, the company delivered 98,155 cars, which is a jump of 263% from 2020.
NIO continued to lead the game for the total number of cars delivered since in operation, which stood at 167,000 compared to 125,000 for XPeng and 123,000 for NIO. Pika World believes the rush to buy new EV cars might have been the key driver for a gigantic sales figure as China is set to cut the subsidy for EV cars in 2022.
Hence, buying early in 2021 will give a price tag advantage.
Pika World continues to maintain some level of exposure to Chinese EVs companies.
It is 4 Jan, Tuesday , 7am in Singapore and 7pm in New York. We hope the first trading day has been profitable for you.
Cheers,
Pika Nat.
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