- The global chip shortage is called a short-term overhang for the Chinese auto sector by Wedbush Securities.
- "We believe the chip shortage which has impact the overall global auto industry as well as Tesla's recent price cuts have dented some positive market dynamics for Nio in the near-term, although we believe this will be short lived," updates analyst Dan Ives.
- Ives and team forecast the Chinese EV market to go from a 4.5% penetration rate to 10% in the next 2 years as consumer appetite for EV vehicles across the board soars.
- "We believe China could see eye popping demand into 2021 and 2022 across the board with Tesla's flagship Giga 3 footprint a major competitive advantage, as domestic players such as BYD, Nio, Xpeng, and Li also are also firing on all cylinders and just scratching the surface of the overall TAM in China."
- Chinese EV names Li Auto (LI -6.0%), XPeng (XPEV -9.5%) and Nio (NIO -11.2%) are lower in today's session after Nio's earnings update and a monthly deliveries report from Li Auto tamped down some of the high growth expectations for the sector. Tesla (NASDAQ:TSLA) is down 1.96% amid the sharper focus on China.