Buy the Dip at $6.56 for NIO ? What's going on ?

 Nio fell down ~8% today and made a 52-week low on Tuesday. This adds to 20% over slide this month. This is primarily because of Tesla Price Cuts In China which Spooked the Investors. 

 Nio shares traded higher in December after the company launched its new ET9 sedan at its Nio Day event and unveiled its fourth-generation power swap stations. The stock also got a boost from the People's Bank of China, which said it would increase macroeconomic policy adjustments in an effort to support the economy.

However, Nio is off to a slow start in 2024. Nio shares pulled back at the start of the new year after the company announced a repurchase right notification for its 0% convertible senior notes due 2026.

This is a good buying opportunity at these price.

Along with being a potential catalyst for vehicle sales, advances for Nio's autonomous driving technologies could create opportunities to score wins in potentially massive robotaxi and autonomous shipping markets in the future.

Nio could also be making some significant moves to bolster its profitability in the near term. For starters, the company announced plans to cut approximately 10% of its workforce in November.

Subsequent reports emerged suggesting that the company could wind up laying off between 20% and 30% of its workforce. While that might raise some red flags, the potential headcount reduction was said to be focused in non-core businesses for the company. If Nio can efficiently trim its workforce, that should create a substantial positive earnings catalyst and increase the stock's chances of a breakout recovery.

What are the big risks with Nio?

As it stands, Nio continues to post large and expanding losses. The EV specialist closed out the period with cash and equivalents totaling roughly $6.2 billion, but its path to operational profitability remains speculative. The EV market is intensely competitive and could become even tougher down the line.

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Mobileye Stock Plunges After Revenue Warning. Why It’s Bad News for Intel . How its related

 Global shares were diving on Thursday after the autonomous-driving systems company said it expects a 50% fall in revenue in the first quarter of the year. The disappointment is also a blow to its former parent and majority shareholder.

Intel owns 87%

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Why is NIO down ?

While many American analysts insist buyers “don’t want electrics, they want Teslas (NASDAQ:TSLA),” Chinese brands are increasingly dominant.

BYD now sells more cars than Tesla, and Li is growing faster than Tesla. European buyers seem to be holding off on purchases, awaiting low-cost Chinese EVs.

American politicians label China a climate criminal. But it’s the U.S. that now pumps more oil than any nation ever has. China is also dominant in green technologies like solar panels and EVs. Efforts by General Motors (NYSE:GM) and Ford Motor (NYSE:F) to compete are sputtering.

The Biden administration’s incentives for buying EVs are focused on middle-income buyers purchasing made-in-America cars. But that’s not where the market is going.

The best test of these new market assumptions is Nio, which is far ahead of its rivals in its export drive. Nio has gotten $2.2 billion from Abu Dhabi to fund European exports. It will launch a low-price brand called Firefly in Europe later this year.

Li, meanwhile, is undergoing its own electric transition, with plans to launch an EV costing under $30,000.

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Next Week predictions for Chinese EV (Nio, Xpev,LI)

 This week all chinese EV firms and the entire EV market in US went through a consolidation. There are many reasons like profit taking, healthy pull back are being discussed. Chinese EV went down not because of the chinese Bill .

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EV Truck Maker Lordstown Motors Is Getting Bought - new IPO coming ?

Barrons just reported Lordstown Motors—the company building a new electric truck at a former General Motors plant—is being acquired by a special purpose acquisition company, or SPAC.

DiamondPeak (ticker: DPHC) is buying the EV startup. That’s the company that investors can trade which will morph into Lordstown Motor eventually. When the deal is done, DiamondPeak will change its stock ticker to RIDE.

“We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition,” said Lordstown CEO Steve Burns in the company’s news release.

The transaction will raise about $675 million for Lordstown and values the company at about $1.6 billion. That makes a 10% stake held by the electric-van maker Workhorse (WKHS) worth about $160 million.

DiamondPeak is up 25% in premarket trading. Workhorse stock is rising, too, with a gain of 4%.

In addition to its 10%, Workhorse earns a royalty on sales of Endurance trucks, the ones Lordstown will sell. The deal should be a positive for Workhorse stock.

Workhorse investors, however, are most interested in the U.S. Postal Service. Workhorse is bidding for a contract to replace hundreds of thousands of Post Office vehicles. A decision is due this fall.

A lot of electric vehicle startups have taken the SPAC route to market including Fisker, Hyliion and heavy-duty truck maker Nikola (NKLA) to name a few. Chinese based Li Auto (LI) looks like an outlier selling shares to the public in a traditional IPO.

There has been a lot of EV activity in 2020. The space is hot, helped, no doubt, by the incredible performance of Tesla (TSLA) shares in 2020. Tesla stock is up about 240% year to date. Tesla is now the world’s most valuable car company.

The Lordstown Endurance is slated to enter the EV competition with a release in 2021. The truck will get a targeted 75 miles per gallon and the company has secured about $1.4 billion worth of preorders.

“Our platform is rooted in sustainability, and the entire Lordstown team is committed to ensuring we contribute to a healthier planet for generations to come,” added Burns.

Coming into the deal, DiamondPeak stock was up about 3% year to date, a little better than comparable returns of the S&P 500 and Dow Jones Industrial Average.

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Alibaba increases its stake in Xpeng before EV maker's IPO

According to autonews.com Chinese electric-vehicle startup Xpeng Motors is raising more funds from Alibaba Group Holding and other investors ahead of its planned initial public offering in New York, according to people familiar with the matter.

Qatar Investment Authority also is one of the backers putting in another $300 million total in Xpeng, said the people, asking not to be identified because the matter is private. That expands Xpeng’s pre-IPO funding round announced last month to $800 million. The increased funding reflects investor demand, one of the people said.

The Guangzhou carmaker still may add to its haul before the IPO, the people said, as investor interest in EVs increases following gains in shares of Tesla Inc. and the U.S.-listed Nio Inc. this year. Xpeng competes against those two companies and a raft of other startups in China, the world’s largest EV market.

The company has filed confidentially to the U.S. Securities and Exchange Commission to go public as soon as this quarter, the people said.

An Xpeng representative declined to comment. A spokesperson for Alibaba, an early backer of Xpeng, confirmed the technology giant’s participation in the latest round, without providing details. Qatar Investment, a new investor, didn’t respond to requests for comment. The South China Morning Post earlier reported the increase in the funding round.

After years of developing cars and trying to boost their profiles globally, Chinese EV makers are taking steps to go public as the virus pandemic and economic slowdown squeeze the market, boosting competition. Li Auto raised $1.1 billion via a listing on the Nasdaq last week, and Hozon New Energy Automobile Co. said it would list in Shanghai as soon as next year. WM Motor Technology Co. is also weighing an initial stock sale in China as soon as this year, people familiar with the matter have said.

Xpeng delivered 5,185 units of its first vehicle, the G3 crossover, in the first half. It started deliveries of its second model, the P7 sedan, in July, shipping 1,641 units that month.

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Why Kandi Technologies Stock Slumped

What happened

Shares of Chinese electric-vehicle maker Kandi Technologies (NASDAQ:KNDI) were trading lower on Friday afternoon, two days after a surprise rally that more than doubled its share price. 

As of 3:15 p.m. EDT, Kandi's American depositary shares were down about 13.4% from Thursday's closing price -- but still up about 83% for the week. 

So what

Kandi's stock price jumped 140% on Wednesday afternoon, after the company said that it will launch two of its small electric cars in the United States at a virtual event on Aug. 18. Interested customers will be able to reserve the Kandis with a $100 deposit at that time, the company said.

The two cars that Kandi plans to bring to the U.S. are hardly Teslas. They're both urban commuter cars with small battery packs and, shall we say, modest performance. Kandi's U.S. flagship, the K23, is an upright four-door hatchback with an estimated range of 188 miles, a price of about $30,000 before incentives, and a very un-Tesla top speed of just 70 mph. 

KANDI'S K23 DOESN'T LOOK OR PERFORM LIKE A TESLA, BUT IT WILL COST CONSIDERABLY LESS. IMAGE SOURCE: KANDI TECHNOLOGIES.

That doesn't stack up well against the Chevrolet Bolt or Nissan Leaf, both of which offer better range, top speeds more appropriate to U.S. highways, and nationwide service networks -- and build quality that is known to be high -- for not much more money.

Kandi's other U.S.-bound model, the simpler and cheaper K27, is definitely intended as a city car: It has estimated range of around 100 miles, a price of $20,000 before incentives, and a top speed of 63 mph. 

Now what

It's no surprise that the company's stock soared on Wednesday's news, given the intense investor interest in electric-vehicle stocks in recent months triggered by Tesla's massive run-up earlier in 2020. Nobody wants to miss out on the next Tesla -- but on closer examination, Kandi might not be the right horse to bet on in that race. 

I think auto investors have been doing that closer examination and that's why Kandi's stock fell back on Friday. 

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