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Ford consolidating at higher levels in 22' ? NYSE:F Ford consolidating at higher levels in 22' On top you have the 1hr chart focused on Jan 4-10 Below are the 1 day charts focused on Nov - Dec Take notice of the range Ford is now creating. I believe this is the same pattern we saw Nov-Dec while it consolidated between 19-21 where the market needed time to absorb the new prices levels that hadn't been seen in 20 years Looking for this new range to form at 23-25 Lets see how this ages
NYSE:FLong
by OccamsPhazer
Is Tesla overvalued?NASDAQ:TSLA is the fifth largest listing on TradingView based on market cap and has been a huge center of focus within the investment community, whether it is the more seasoned investor or trader to the inexperienced speculator who throws money at Bitcoin and various growth companies. Despite all of this there are many factors that the majority of the investing community fail to acknowledge or believe it doesn't affect the company's performance. Personally despite the crazy stock prices and lack of build quality within their physical product, I have a considerable amount of faith in the earning potential of Tesla for a couple of reasons. First of all, one should notice that at the time of writing Tesla's PE ratio is sitting at a whopping 370.66 (comparable to the firms during the dotcom bubble) and they have a considerable amount of debt but nothing that threatens their operation or is completely disproportional to any other company. It certainly would not be appropriate to compare them to other solely electric automotive manufacturers as their financial statements often seem less welcoming than Normandy beach on D-day. On the contrary to all the fore mentioned facts, Tesla's earning power has increased considerably between 2019 to 2020 and is looking towards the upside for 2021. In the past 4 years, any deficits have turned to income and their overall assets has increased consistently. Quite frankly, considering the speculative factors, such as the management of the company and their overall market monopoly, Tesla appears to be a rather profitable long term investment. Electric cars seem to be inevitable considering the carbon emissions issues and the fact that any other alternatives such as bio-fuel and hydrogen cars don't seem to be covering as much ground as quickly, and their market monopoly will keep the firm in good stead for the future potentially forming the "next Ford Motor Company" according to a reporter from Bloomberg. Once again, all opinions and comments are greatly appreciated, I thoroughly enjoy listening to others' opinions and perceptions of the market. TL;DR: Tesla is beginning to look like a promising investment for the long term as their financials steady and seem to head for an upward curve.
NASDAQ:TSLALong
by Michael_Axio
Support & Resistance Zones Mapped!LCID had a nice run. The Bears have rejected the upward momentum twice but LCID is still looking strong based on the S/R zones shown. Do you think it will pump through the current resistance or will it dump below the diagonal support shown? I think it will touch the diagonal support but after that, I'm not too sure. A great EV company overall, so let's see how it plays out. Love it or hate it, hit that thumbs up and share your thoughts! Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect! This is not financial advice.
NASDAQ:LCID
by rnaofs
General Motors Company (GM) - shortSignals Position: Short Target Price : $58 Entry Price: $64 Stop loss: $66 Indicators RSI is above 70 STOCH is above 80 and the indicator has negative, meaning is could have already reached the peak MACD is only slightly above the signal line The stock price is in the upper band of the Keltner Channel Analysis The stock is in an uptrend, made of impulses and pullbacks but has now reached the resistance level after two long bullish candlesticks. Nevertheless the MACD does not signal a strong bullish momentum and Stochastic indicator and RSI already show an overbought stock. Furthermore the stock price is currently above the upper band of the Keltner channel, so we can expect it to retrace back to the closest moving average. The entry price is at resistance level, and we use the Fibonacci retracement tool to set the profit target at the 0.618 level. No financial advice.
NYSE:GMShort
by vf_investment
1
Breakout or Rejection!?Money Makers! GM is on its way to retest previous highs. I possible breakout or rejection is incoming. Let's stay patient and have your orders ready! Let me know what you think will happen below. I'm curious. Love it or hate it, hit that thumbs up and share your thoughts! It's all about Market structure, Area of value, and Entry Trigger. Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect! This is not financial advice.
NYSE:GM
by rnaofs
2
Beautiful Channel!Money Makers! GE has been trading in a horizontal channel for a very long time. It recently was rejected from moving higher and is currently attempting to bounce off the 50 EMA. If the 50 EMA fails we can expect it to move lower to retest the bottom of the channel again. Love it or hate it, hit that thumbs up and share your thoughts! It's all about Market structure, Area of value, and Entry Trigger. Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect! This is not financial advice.
NYSE:GE
by rnaofs
1
ASII: INDICATION OF AUTOMOTIVE INDUSTRY RECOVERY AHEAD?Hello Enthusiast Stock Traders! Here's Medium-Term outlook for ASII, Please give us the thumbs up and support the channel by Smashing the FOLLOW button :) ASII has broken out of the Descending Broadening Wedge Pattern Impulsively. The MACD already crossed above the zero level area, it signify the potential upside movement ahead. The roadmap will be invalid after exceeding the support/target area. DISCLAIMER: This is only an outlook, not a recommedation to buy or sell the Stock.
IDX:ASIILong
by financialfreedomgoals101
4
Ford Motor Co. (F) Overall Macro Trends & Bullish Case for ATHsThis a fairly long video on Ford Motor Company NYSE:F and the overall macro trends I see in its market. I am long on Ford and this is my bullish case-video and DD. I hope you enjoy! NYSE:F . This is also my first voice over video, so please be kind and let me know if there is ANYTHING you disagree with on the charting aspect of the video or otherwise. Identified: 1. Falling Wedge 2. Ascending Rising Channel 3. Ascending Broadening Wedge 4. Levels of Support 5. Levels of Resistance 6. Breakout Zones 7. Overall Options-Chain Sentiment Tools Used: 1. Trading View 2. Google 3. Unusual Whales 4. www.ford.com 5. My brain Indicators Used: 1. Weekly Candles to find levels of support and resistance - keeping it simple Could Ford be on the verge of a breakout? How is Ford fitting itself into the EV future? What does the big money say about Ford? After careful study of Ford NYSE:F I have come to a bullish conclusion that this stock is getting very close to all time highs. There are 3 major overall macro BULLISH patterns at play that I have highlighted in my video. 1. Falling Wedge 2. Ascending Rising Channel 3. Ascending Broadening Wedge NYSE:F We are possibly about to enter into a breakout zone with NYSE:F as a Broadening Wedge breakout is forming right now. This Broadening Wedge breakout could propel Ford out of its Ascending Channel, which itself was used to thrust Ford out of its Falling Wedge. This is my mind is BULLISH. Please watch the video for more details on my case of Ford reaching new ATH and when that could potentially happen. Any feedback is greatly welcomed! I am long on Ford F
NYSE:FLong
by OccamsPhazer
4
Technical analysis update: BMW (1st November 2021)BMW continues to grow since 20th August 2021. It currently trades around 87.50 EUR per share. Technical factors are neutral to bullish and because of that we would like to set short-term price target of 90 EUR per share. Technical analysis RSI has bullish structure. We will watch it closely and we will look for eventual crossover above 70 points. We expect such phenomenon to be accompanied by further rise in price. MACD is also bullish, however, it loses its momentum. Stochastic is bullish too; and ADX contains very low value which suggests neutral trend. Because of that we would like to see another confirmation of uptrend by price taking out short-term resistance and then lower bound of upward moving channel. Support and resistance Short-term resistance sits at 89.50 EUR while short-term support sits at 86 EUR. Major resistance lies at 96.39 EUR. Our last analysis on BMW from 10th May 2021: Here we correctly predicted end of correction and eventual resumption of uptrend. We also set 90 EUR price target which was subsequently reached. Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade. This content is not financial advice.
XETR:BMWLong
by Tradersweekly
9
Increase in Revenue with Decreasing Net Profit GM Motors Q3 2021The automaker has been expanding its global layout during the past quarter of 2021 and has entered the Egyptian, Bruneian and European markets. During the third quarter, Great Wall Motor announced its target of selling 1 million vehicles overseas in 2025. The revenue of the firm increased 10.13% year-on-year to CNY 28.86 billion. Operating income was CNY 28.86 billion, a year-on-year increase of 10.13%. Net profit was down 1.72% year-on-year to CNY 1.41 billion. From January to September 2021, the automaker achieved a total operating income of CNY 90.79 billion, a year-on-year increase of 46.11%, and a net profit of CNY 4.94 billion, up 91.13% year-on-year. For the first three quarters this year, Great Wall Motor added that the company witnessed a 29.9% increase in new car sales versus the previous year to 884,000 vehicles. From January to September, GWM sold 98,000 vehicles outside China, soaring 136.3% compared to a year ago, accounting for 11.1% of the company's total vehicle sales. Great Wall Motor's performance in the capital market has also improved significantly. As of the close of October 29, the company's A-share stock price has reached CNY 68, an increase of 82.65% from the closing price on December 31, 2020. The market value of the firm has reached CNY 628.1 billion, ranking second among Chinese automobile companies.
HKEX:2333
by EqualOcean
BYD Reportedly to Raise Battery Prices by Over 20% Next MonthBYD's reasoning is that the raw materials for lithium batteries have been rising due to market changes, power restrictions, and production limitations. BYD, China's largest new energy vehicle company, is also the second-largest local supplier of power batteries after CATL. As costs rise, the company is said to be raising the price of its batteries. BYD will raise the unit prices of its battery products, including CO8M, by no less than 20 percent from November 1, the Securities Times said Tuesday, citing a document. BYD argues that the raw materials for lithium batteries in 2021 continue to rise with the price of cathode material LiCoO2 rising by more than 200 percent and electrolyte prices rising by more than 150 percent. Material supply continues to be tight, resulting in a significant increase in comprehensive costs, according to the Securities Times. Since November 1, BYD and its customers will sign new contracts for new orders and implement new prices, and orders for old contracts that have not been completed will be closed and canceled, according to the report. Local media cls.cn then quoted BYD insiders as saying that the information is currently being verified. It's unclear whether CO8M batteries are power cells used in new energy vehicles, and public sources can't find an explanation of the term. BYD is also one of the world's largest suppliers of batteries for cell phones and ranks second in China's power battery market. Data released earlier this month by the China Automotive Battery Innovation Alliance showed that BYD's installed power battery capacity in China was 14.73 GWh from January to September this year, with a 16 percent market share. CATL's installed capacity from January to September was 46.79 GWh, ranking first with a 50.8% market share. It is worth noting that BYD's power cells are mainly supplied to itself and have been used in some other brands' new energy logistics vehicles since 2018. This year Ford Mustang Mach-E and some FAW Hongqi models started using BYD's power cells. In May, the Digi Times reported that with the price increase of China-made Tesla Model 3, rumors said CATL might follow with a 10 percent price increase. The report mentioned that LFP raw material prices have jumped 50 percent this year, but battery suppliers have taken on the pressure of the price hike themselves for fear it would lead to lost orders. Citing sources, the report said most LFP battery makers want CATL to take the lead in raising prices in response to the steep rise in LFP material costs, making it easy for the industry to follow suit. CATL later responded that the report that its LFP battery offer would be raised was not true. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
OTC:BYDDY
by EqualOcean
NIO: to Boost Its Battery Swap Stations' Coverage Along HighwaysThe company also has 341 supercharging stations with 2,176 supercharging piles, 515 destination charging stations with 2,878 piles and access to more than 400,000+ third-party charging piles. The Chinese Lunar New Year holiday is a peak travel time for the public, and NIO wants to significantly expand its battery swap stations' coverage along highways before then to make it easier for its customers to travel by car. The electric vehicle company announced Tuesday that it will have a battery swap network covering eight major highways and four densely populated metropolitan areas by the Chinese New Year in 2022. The next Chinese New Year will come on February 1, 2022, and no official schedule has been released, but the holiday is usually seven days. The holiday is typically a time for people working in major cities to return to their hometowns and will also see one of the world's largest population migrations, although it has waned in size in recent years due to Covid-19 concerns. According to NIO's plan, the company hopes to complete a battery swap network along five north-south highways and three east-west highways by then. The five north-south highways are G1 Beijing-Harbin Expressway, G2 Beijing-Shanghai Expressway, G4 Beijing-Hong Kong-Macao Expressway, G5 Beijing-Kunming Expressway, and G15 Shenyang-Haikou Expressway. The three east-west highways are the G30 Lianyungang-Horgos Expressway, the G50 Shanghai-Chongqing Expressway, and the G60 Shanghai-Kunming Expressway. The four metropolitan areas the company hopes to cover are Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu-Chongqing. William Li, founder, chairman and CEO of NIO, said Tuesday that the company's number of battery swap stations covering the highway now stands at 99 and will increase to 169 by the Chinese New Year. Notably, NIO has previously built battery swap networks covering the G2 Beijing-Shanghai Expressway and the G4 Beijing-Hong Kong-Macao Expressway. On September 20, the company announced the completion of its battery swap network covering the G1 Beijing-Harbin Expressway, making it the third fully connected expressway battery swap network. The G1 Beijing-Harbin Expressway is 1,229 kilometers long, and NIO has provided 10 battery swap stations along its route, one every 120 kilometers on average. In addition, NIO announced on September 16 that with three new battery swap stations in highway service areas in operation, it has completed its network of battery swap stations in highway service areas from Beijing to all major cities in the surrounding area. The network consists of 12 highway battery swap stations, centered on Beijing, covering the service areas in Hebei and Tianjin on seven highways: Beijing-Chengde, Beijing-Harbin, Beijing-Lhasa, Beijing-Chongli, Beijing-Shanghai, Beijing-Hong Kong-Macau, and Beijing-Qinhuangdao. According to CnEVPost database, as of September 21, NIO had 484 battery swap stations in China. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China. For the full article with the charts, please visit the original link.
NYSE:NIOLong
by EqualOcean
Li Auto Delivered Record 9,433 Vehicles in Aug, Up 248% YoYDeliveries of the new Li ONE began on June 1. Li Auto delivered a record 9,433 units of the Li ONE, the company's only model, in August, up 248 percent year-over-year and 9.8 percent from July. That number exceeded many expectations, considering the company gave conservative guidance for the third quarter in its earnings report released earlier this week. For the first eight months of 2021, Li Auto deliveries have totaled 48,176 units. The Li ONE's cumulative deliveries now stand at 81,773 units, the company announced Wednesday. As of August 31, 2021, Li Auto has 114 retail centers covering 69 cities, as well as 194 aftermarket repair centers and authorized sheet metal spray centers covering 143 cities. Notably, when Li Auto announced its second-quarter earnings on August 30, it said it expected deliveries of 25,000-26,000 units in the third quarter. Considering that the company previously said that September deliveries were expected to exceed 10,000 units and July deliveries were 8,589 units, many believe this implies that Li Auto's deliveries in August will be at most 7,400 units. The Li ONE is an electric vehicle with extended-range technology, having a three-cylinder engine as the range extender. The Li ONE became available in October 2019. On May 25 of this year, Li Auto announced the 2021 Li ONE with a starting price of CNY 10,000 (USD 1,560) higher than the previous version at CNY 338,000. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NASDAQ:LI
by EqualOcean
GM Support!Money Makers! GM has found support after the massive correction. There was a huge recall on their cars along with a few other things that fueled this sell-off. This is a resilient company and it can continue to grow. Right now it is trying to bounce off support which can be a great place to go long with a tight stop-loss. If these level fail i can see a retest of the low $30s. Let's see how the next few trading days play out! Love it or hate it, hit that thumbs up and share your thoughts! Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect! This is not financial advice. Simplicity Wins
NYSE:GM
by rnaofs
2
BREMBO MID/LONG TERM OPPORTUNITY Brembo is an leader Italian manufacturer of automotive brake systems, especially for high-performance cars and motorcycles. Its head office is in Curno, Bergamo, Italy. The company has excellent fundamentals and recently opened the first dedicated digitization branch in Silicon Valley. BULLISH HEAD AND SHOULDERS Excellent possibility of upward entry in the medium / long term for this underlying. The price structure facilitates any hedging strategies by the investor. The risk-return (RR) of the transaction is decidedly advantageous and can vary from 0.95 to 2.70 depending on the type of management. In management it is appropriate to consider the exposure of the reference sector to inflation. In fact, rising and not temporary inflation could negatively affect the cost of production.
MIL:BRELong
by UnknownUnicorn25541012
BYD, China's Next Hardware GiantAccording to Wilson's report, the average price of BYD's vehicles has surpassed that of popular joint venture brand Volkswagen by about CNY 10,000. BYD is an automobile company that provides vehicles, EV batteries, semiconductors and electronics foundry services. We estimate its stock's value based on the sum-of-the-parts (SOTP) method. The company's EV and battery businesses account for most of the valuation. We consider BYD to be currently undervalued and expect a 22% upbeat. In 2020, the Chinese NEV market had a stellar performance – NIO, Xpeng and Li Auto all delivered considerable volumes of vehicles. Meanwhile, we spotlight BYD, a car maker once invested by Warren Buffett, as a best-in-class electric vehicle company. With its solid fundamentals, BYD is likely to become a major hardware conglomerate – much like Tencent or Alibaba in the consumer Internet sector. This article will examine the company's business segments, touch upon potential risks, and conduct an SOTP analysis to value its shares. Intro Wang Chuanfu incorporated BYD in 1995, inspired by the prospects of the Li-ion battery applications. Since then, he has led the company, building it into an agile manufacturing mammoth capable of starting new ventures and succeeding quickly across many fields. For one, BYD started to produce face masks in the first days of the COVID-19 outbreak and has now become the biggest mask producer worldwide. Its business segments remain the same though – those are internal combustion engine (ICE) vehicles, EVs, power batteries, auto semiconductors and electronics assembly services. Auto OEM BYD sells both ICE vehicles and EVs, primarily in China (but is getting more active abroad). In 2020, it sold 231,000 units of ICE cars, a year-on-year (YoY) increase of 3.8%. The parts sales accounted for a significant share of total revenue but remained less profitable. Now, BYD is full speed ahead to transform itself into an EV-based company. Because BYD didn't disclose its total ICE car sales revenue, we broke down its revenue streams and assumed the average selling price (ASP) was between CNY 100,000 to CNY 110,000. Therefore, ICE generated revenue of CNY 24 billion in 2020. We expect the ICE business will drop 10% in the next few years as the sales momentum will shift to EV. In 2022, the revenue will reach CNY 19.4 billion. With a 2x PS ratio based on Great Wall Motor and Geely Auto, the ICE business will be valued at CNY 38 billion. In the meantime, EV sales has become the most valuable business – last year, BYD sold 162,000 EVs, a YoY decrease of 12.5%. After upgrading the 'dynasty' EV series, BYD entered the middle-to-high-end market. The series adopts self-made 'blade batteries' to prevent EV from battery catching fire. The hit model 'Han,' a car somewhat similar to Tesla's Model 3 and Xpeng P7, sold 8,522 units in July, surpassing the sales volume of NIO and Xpeng. According to the 2020 financial report, BYD made CNY 24.4 billion in revenue from EV sales. We project the EV sales will increase by 100% (based on the fact that sales from January to July 2021 surpassed last year's figure) and by 25% in 2021 and 2022, respectively. We also assume the ASP will increase by 5% in 2021 and 2022 as more high-end models are delivered. For these two years, the revenue will hit CNY 51 billion and 67 billion. With a 10x 2022 PS ratio, the EV department is worth CNY 670 billion. Power battery sales is another core business for BYD alongside EVs. According to SNE research, BYD's installed capacity reached (link in Chinese) 7.8 GWh during the first half of 2021, ranking No.4 worldwide. This is 23% of CATL's installed capacity. Therefore, conservatively speaking, we estimate the market capitalization of BYD's battery division will be one-fifth of CATL's. Thus, the power battery business is worth CNY 240 billion, based on the fact that CATL's market cap had already reached CNY 1,200 billion as of August 9, 2021. BYD Semiconductors Semiconductor manufacturing is another important segment for BYD. It is set to be spun off from BYD to go public. It features auto semiconductors, which provide IGBT, smart control IC, sensors and optoelectronic semiconductors. BYD semiconductors can independently design, manufacture, package and test chips. It is the only company to achieve this in China. Based on our latest report, auto chips will be in high demand as more vehicles will be electrified in the future. As per BYD's 2020 report, the semiconductor business was valued at CNY 7.5 billion in May 2021. We believe the figure will triple while launching on the open market. It is estimated that BYD will deliver semiconductors worth up to CNY 20 billion. BYD Electronic Apart from providing high-end products, BYD also made CNY 60 billion toplines (38% of total 2020 revenue) from assembling smartphones, tablet computers and laptops. These products show low profitability similar to other electronics foundries like Hon Hai Precision. We refer to Hon Hai's 0.25x 2022 PS ratio and project 12% growth in the next two years. We calculated that BYD Electronic is valued at CNY 18 billion. To sum up, BYD is valued at CNY 988 billion. Even so, we think the estimation is a bit conservative as some assumptions aren't considered in it. BYD's EV will deploy more self-made batteries and chips, which will save a lot of costs for the company in the long term. What's more, rumors said BYD's battery had been tested by Tesla and would likely be equipped with Tesla's vehicles. This potential opportunity will significantly boost BYD's valuation in the battery division. Risks BYD's EV sales were affected by the industry's downslide in 2019 and 2020. Moreover, the EV market has been involved with intensified competition, as proved by the price slash of a few models and few companies leaving. BYD, with its comprehensive business mix, should have the means to face these challenges. Conclusion Viewed as part of the big picture, BYD is a company less profitable than some of its auto peers – one with a 2.6% net profit margin in 2020. We consider the company to have set margin improvement as a long-term goal, while also expanding in the EV battery and related battery segments. Although BYD just saw a market cap rally in the past few days, we believe it is still undervalued and has a 22% upbeat opportunity as of August 20, 2021.
OTC:BYDDFLong
by EqualOcean
Li Auto: Challenges, Opportunities and Stock ValuationThe company is expected to report its Q2 2021 financial results on August 30. Li Auto will use the money from the secondary public offering to develop a battery EV. Li ONE is a good-selling model – but the company is yet to prove its ability to roll out a mature BEV. There are concerns about Li's technology and goal-setting, but there is room for improvement. Li Auto is fairly priced. Investors who have faith in EREV are encouraged to buy into the stock now. On August 12, 2021, Li Auto (LI:NASDAQ) started trading on the Hong Kong Stock Exchange. It has become the second Chinese EV company to be listed on both hemispheres. Having collected CNY 11.6 billion while operating on dry powder, how will the company expand afterward? This article will do a business review of Li Auto and value its stock. The impediments arising from COVID-19 have not stopped China's EV market from sprinting in 2021. Among a wealth of EV companies, Li Auto delivered 38,743 units of Li ONE in the first half of that year, surpassing the previous year's figure. But the company's fundamentals are still somewhat overshadowed by those of its counterparts in the space. Technical bottlenecks, unrealistic goals According to our previous research, Li Auto has spent a lower percentage of revenue on research and development compared with NIO and Xpeng. More importantly, the Li ONE model uses the range extender as a core technology, one that has been used globally for some years now. Specifically, this technology was first commercially used on the Chevy Volt and the Nissan LEAF in late 2010. The extended-range electric vehicle (EREV) is fully powered by electric motors but has an internal combustion engine (ICE) to generate additional electric power. The battery pack will supply power to motors when it is fully charged. When the battery's power decreases to a specified level, the ICE-powered generator switches on to supply power to the electric motor and/or recharges the battery. The technology allows ICE to charge batteries but consumes noticeably less fuel than conventional internal combustion engine vehicles (ICEVs). Thus, vehicle owners can either charge cars with gasoline or electricity. In short, the range extender is a transitional solution and will likely be outdated in a few years as the battery cost quickly decreases and EV infrastructure upgrades. Presumably, BEV will account for a higher percentage of EV as EV penetrates the broader market. BEV development needs to meet professionalism/technology thresholds in battery, electric control and electric motor. Although most OEMs buy solutions from tier-one or tier-two manufacturers, a lot of work is needed for benchmarking and integrating these components into a mature product. Li Auto doesn't have enough expertise in this field. Based on Li's most recent prospectus, the company plans to roll out two new BEVs in 2023. We have doubts about whether the company will be able to finalize a mature product at that time. Besides, Li Auto's management set an exaggerated expectation of the company's EV sales that has alerted its investors. In February 2021, the company announced its outlook internally. The founder set a goal for the company to reach 1.6 million in annual EV sales by 2025. Such a target will be hard to achieve. 1.6 million vehicles equal Toyota's 2019 sales in China. Toyota, the Japanese auto giant, has been selling cars in the Chinese market for 20 years and has accumulated a much larger customer base and global reputation than Li Auto. An ambition to become a brand as famous as Toyota in five years appears challenging, to say the least. Having 1.6 million deliveries by 2025, inter alia, means that the annual delivery figures are projected to grow at a 170% CAGR, a rather high rate. Opportunities and attempts to catch up Notwithstanding, Li Auto still has an opportunity to join the group of tech leaders. Within the fast-growing EV industry, there are many suppliers providing solutions like ADAS, Lidar and third-party charging infrastructure – and, incentivized by China's state policies, new upstarts appear daily in these areas. The technological 'backwardness' of Li Auto might be resolved through a couple of acquisitions. The company, meanwhile, is taking some actions to drive innovation internally; for example, it started building an R&D center in Shanghai in April 2021. Li ONE, a best-selling model, also brought the public's attention to Li Auto. Li Auto's management expects over 10,000 sales in September 2021. We think the reason Li Auto has such strong momentum is due to its product positioning. One of the examples will be a family-oriented SUV with 6 to 7 seats. Compared to the competing models with the same price, this SUV is equipped with an entertainment system that includes three screens and appears to be a more economical option. The consistency in product positioning has made Li Auto a popular brand. Valuation To evaluate Li Auto's stock in a simplistic manner, we forecast Li's 2022 car sales will be around 130,000 to 140,000 units. With an assumed average revenue generated per car of CNY 284,000, according to the Q1 2021 financials, the total revenue for 2022 will be USD 5.7 billion to USD 6.1 billion. Because of Li Auto's ongoing technology transition, the multiple is halved to 5 times of 2022 revenue. Therefore, the projected market capitalization of Li Auto is USD 28.5 billion to USD 30.5 billion. Conclusion Li ONE is highly likely to maintain strong sales momentum in the short run. But 2023 will be a challenging year depending on whether the company can succeed in rolling out battery electric vehicles. Compared with NIO, Xpeng and BYD, the stock is at half of their EV divisions' multiples and priced at a reasonable level. Due to some technical and strategic issues, the company's outlook is mixed. Now is a good time for investors who have faith in EREV to make a decision.
NASDAQ:LILong
by EqualOcean
EO500 Tracker: BYD Boosts Overseas Sales Amid COVID-19 PandemicCOVID-19 has severely affected global markets. As per the recent IMF report, the world's GDP declined by 3.5% in 2020, with a significant increase in unemployment, disposable income reduction and lowered productivity in secondary and tertiary industries. At the same time, this period of turbulence separated the wheat from the chaff, filtering out uncompetitive companies. Adjusting their businesses, many firms have responded with localization strategies, while others have seized opportunities in overseas markets to reinforce their global influence. Among the 45 largest (by market cap) publicly-traded EO500 companies, 16 firms saw their overseas revenues increasing in 2020. In this regard, BYD, Xiaomi and Tencent were among the best performers, with year-on-year growth of 203%, 34% and 103% respectively. Founded in 1995 and swiftly known as a pioneer in battery technology, BYD (01211:HK) expanded its footprint worldwide, with operations in over 50 countries and regions. It has a strong market presence, principally participating in the automobile business, offering traditional fuel-engine vehicles and new energy vehicles, rechargeable batteries, handset components and other related products. With the strongest performance in the international market amid the pandemic and global economic uncertainty, the company's overseas revenue rocketed from CNY 19.5 billion to CNY 59.1 billion, establishing a leading position in the global new energy vehicles sector. Such a massive growth was driven mainly by the combination of improved product quality and growing demand. With a patent portfolio covering lithium iron phosphate batteries, control technologies in bidirectional converters and high-power charging systems, BYD continues building its high-tech prowess. Besides the firm's technological advancements, cost advantage is speeding up the process as well. In recent years, BYD tried to localize its production worldwide, establishing manufacturing plants in numerous countries like the US, Brazil, France and Hungary. This long-term development strategy helps the company minimize costs and avoid tariffs, providing advanced after-sale services.
OTC:BYDDFLong
by EqualOcean