Home Stock 3 Chinese Electric Vehicle Stocks to Avoid in October

3 Chinese Electric Vehicle Stocks to Avoid in October

- Advertisement -
Stock Markets11 minutes ago (Sep 27, 2021 12:30PM ET)

(C) Reuters. 3 Chinese Electric Vehicle Stocks to Avoid in October

Even though China is leading the electric vehicle (EV) race, most Chinese EV stocks declined in price recently because Chinese authorities hinted at industry consolidation. Against this backdrop, Chinese EV stocks BYD Company (OTC:BYDDY), XPeng (XPEV), and Kandi Technologies (KNDI) look significantly overvalued at their current price levels. So, we think it could be wise to avoid these three stocks now. Let’s discuss.The global electric vehicle (EV) industry has achieved significant growth thanks to favorable government policies to address increasing climate change concerns. According to a Fortune Business Insights report, the global EV market is expected to grow at a 24.3% CAGR over the next seven years. In addition, China’s central government would like 20% of new cars sold to be electric energy vehicles by 2025.

However, most Chinese EV stocks declined in price recently after Chinese Industry and Information Technology Minister Xiao Yaqing said consolidation in the sector is needed because there are “too many” EV makers in China. Furthermore, the EV industry is being negatively affected by the current, global, semiconductor shortage, which is expected to persist for some time.

Against this backdrop, we think it could be wise to avoid Chinese EV stocks BYD Company Limited (BYDDY), XPeng Inc. (XPEV), and Kandi Technologies Group, Inc. (KNDI). Their current valuations are not in sync with their growth prospects.

Continue reading on StockNews

3 Chinese Electric Vehicle Stocks to Avoid in October

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

- Advertisement -
- Advertisement -
Stay Connected
16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe
Must Read
- Advertisement -
Related News
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here