Chinese EV makers will continue to fall
$NIO Inc(NIO.US$ $XPeng(XPEV.US$ $Li Auto(LI.US$ $BYD COMPANY(01211.HK$ $SAIC Motor Corporation(600104.SH$ $GEELY AUTO(00175.HK$ The reason why stock prices of Chinese EV makers are falling like a rock is because of USA’s ever expanding chip sanctions that have been precisely aimed at halting the rise of individual Chinese tech companies and in some cases entire Chinese tech industries to prevent them from competing against US companies. Chinese EV makers are a great threat to US EV makers in the Chinese market and even potentially in foreign markets like Europe. For example BYD already dethroned Tesla to become the number 1 EV seller in China and smaller Chinese EV makers will soon outsell Tesla and other American companies if not “stopped”. Remember how the mighty Huawei that reached number 1 in global sales, USA slapped the chip ban against them causing the mighty giant to fall face flat. Immediately after Huawei’s collapse, Apple shot up to become the number 1 smartphone seller in China. So we can expect US will continue their relentless campaign to suppress the rise of Chinese companies and given that China currently have no option to produce their own chips for these EV makers for at least a decade; while Tesla, Qualcomm, Nvidia, AMD have access to 3nm, 2nm, and soon 1nm chip technology from TSMC for chips powering their AI/Self Driving vehicles, there really is almost NO HOPE for the forseeable future of Chinese EV makers. The smaller Chinese EV companies will likely fade into history. Probably wise to put short on them.
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