Home Crypto The 2 Best Chinese Electric Vehicle Stocks to Buy on eToro

The 2 Best Chinese Electric Vehicle Stocks to Buy on eToro

Although Tesla is the undisputed star and world leader in the electric vehicle industry, there are many who think the stock is overpriced. As a result, from an investor perspective, Tesla may not currently be the best option for betting on electric vehicles on the stock exchange. Indeed, in the opinion of many analysts, Chinese electric vehicle manufacturers listed in the United States could prove to be much more lucrative options.

This is the case of analysts at the firm Bernstein, who recently compiled a list of the best stocks in the electric vehicle sector in China, highlighting 2 stocks listed in the United States (and also available on the platform of the broker eToro) . Below, we will therefore review these actions, referring to the opinion of Bernstein and that of other analysts and banks on Wall Street.


Li Auto Action

Bernstein posts a price target of $ 43 for Li Auto stock, which is a upside potential of 38% compared to last night’s close.

The firm points out that the company’s only electric car model on the market is an Extended Range Vehicle (EREV) which is fitted with a fuel tank to recharge the battery, but believes “Li Auto’s choice for the EREV technology will remain competitive for a very long time, especially in lower tier cities and rural areas ”.

The report also points out that Li Auto recently exceeded the monthly sales volume of Nio and Xpeng, “although it only offers one model and does not enjoy favorable license plate treatment. in Beijing. ”

Finally, it should be noted that other professional bank analysts are just as optimistic for Li Auto stock, the 12-month average target of $ 40, 28% above the current price.

Xpeng action

As for Berstein’s second choice, Xpeng, the firm has a price target of $ 56, a earning potential of almost 20% from Tuesday’s closing price.

Bernstein points out that Xpeng cars cover a wide price range and have self-driving software developed in-house, which has drawn consumers to his brand.

Xpeng’s product line is expected to cover the price range of 150,000 to 400,000 yuan, “which should allow the company to tap into a larger addressable market,” according to the Bernstein report. The firm predicts that the Chinese market segment for this price range will sell 4 million electric cars in 2025.

The firm also points out that Xpeng has made the greatest progress in the development of driver assistance software in China, underlining its lead over Nio and Li Auto in particular.

However, Bernstein also pointed out that the risk is that over time, autonomous driving will become just another feature that consumers can buy for their cars, rather than being tied to a single brand.

Finally, it should be noted that the other analysts also display a clearly bullish opinion for the Xpeng share, the average target being $ 55, or 17% above current prices.

Finally, we remind you that the two actions mentioned in this article are available on the platform of the online broker eToro.

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