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Chinese EV And The Recent Tech Sell-Off: Follow The Wind

Aug. 02, 2021 3:09 PM ETBABA, EDU, HUYA, TAL, TCEHY, LI, NIO, XPEV9 Comments
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Biotech Play Only


  • The recent Chinese tech and education stocks sell-off once again reinforced the unique aspect of Chinese stocks: policy, policy, policy.
  • Chinese EV stocks like Li Auto, XPeng and NIO were sold off initially, but have mostly bounced back.
  • The Chinese government is very bullish on Chinese EV companies, evident by its generous policies regarding EV development.
  • The Chinese EV stocks do not face the same political risks as those of Alibaba, Tencent Holdings, or New Oriental Education and Technology. In fact, it is quite the opposite.

Charge station of an electric vehicle. Automotive technology.
metamorworks/iStock via Getty Images

Main thesis: Chinese government's ongoing tech crackdown does not affect its EV sector

Therefore, any price weakness due to overblown regulatory fear is a buying opportunity for NIO Inc. (NIO), Li Auto (LI

This article was written by

Biotech Play Only profile picture
I am a Chemistry PhD who works in Biotech field as a scientist. I leverage my expertise in understanding and dissecting scientific/clinical data to develop my investment thesis in biotech stocks.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NIO, LI, XPEV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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