Nio, Li Auto and Xpeng have proved that they can take care of China’s electric vehicle market. Nevertheless, these companies’ stocks will slowly drop according to the CEO of one of the automaker consultations groups. Michael Dunne, the chief executive of ZoZo Go, explained that the drop would result from the changes and highs recorded in the last quarter. This company is renowned for offering professional advice for automakers conducting businesses in the Asian continent. Dunne explained that the surge in these companies’ stocks is like a bubble that will eventually burst. Nevertheless, he reiterated that these companies could compete with the Tesla branch running in the Chinese market.
Dunne noted that these companies are products of technology billionaires which implies they can utilize technology to beat Tesla. He advised investors to cash into these companies but with careful considerations. Since the last three months have witnessed a surge in stocks and profits, the stocks would certainly take a dip as the standard stocks should perform. However, these stocks could be a shocker for experts since the electric vehicles are taking over the transportation industry to transition to clean energy vehicles. For example, the shares of Nio clocked $62.15 on the New York Stock Exchange market this Wednesday. This value is over 1500% of the previous values recorded last year.
Additionally, this value was over 180% of the stated value three months ago. On the other hand, Li Auto shares in the Nasdaq stock market escalated by close to double the value in the same period that the value of Nio was recorded. Elsewhere, the stocks of Xpeng clocked 160% on the NYSE market.
Nevertheless, these companies are still in the development stage, forcing the experts to advise them to take the necessary precautions while cashing into these stocks. Young companies must record highs and lows, and it could probably be that they are in their season of highs. The three companies decided to go public with Nio receiving the first offer three years ago. Xpeng and Li Auto became public companies through their listing in the stock exchange market last year. Nonetheless, their going public has not helped them approach the stock levels Tesla, market share or distribution capacity. Tesla is still the leading company in the electric vehicle industry and has even lowered its Model S prices in the Chinese market to rival the new technologies that these three companies will be developing.https://atlanticfinancialmanagement.co.uk/