2 Electric Vehicle Stocks Wall Street Predicts Will Rally by 40% or More
StockNews
Published Jun 22, 2021 03:48PM ET
Updated Jun 22, 2021 04:30PM ET
2 Electric Vehicle Stocks Wall Street Predicts Will Rally by 40% or More
China’s solid economic expansion, along with rising investment in the technology sector and in fixed assets, should benefit its electric vehicle (EV) industry handsomely. The Chinese EV industry’s solid growth prospects, and the country’s global dominance in EV battery production, are the bases on which Wall Street analysts forecast Li Auto’s (LI) and Niu’s (NIU) substantial growth in the coming months. Want to learn more? Then read on.Favorable policy measures and rising investor optimism in the electric vehicle (EV) industry worldwide have lured a large number of new entrants into the sector over the past year. There was a 39% year-over-year rise in global EV sales in 2020. In China, 1.3 million EVs were sold, representing 8% year-over-year growth. China’s economic growth and favorable policy measures to boost its EV industry, along with the advantage of the nation’s own supply of raw minerals used for making EV batteries, should help several Chinese companies achieve solid growth.
Although a global semiconductor chip shortage has been disrupting EV production worldwide, China has been doing a decent job keeping its production going. In fact, many Chinese companies have raised their second quarter delivery forecasts. This, combined with China’s focus on developing its technology sector and domestic production in its five-year plan to combat competition from Western countries, should position China to lead the global EV market in the future.
Given these factors, Wall Street analysts expect popular Chinese EV stocks Li Auto, Inc. (LI) and Niu Technologies (NASDAQ:NIU) to deliver more than 40% returns in the near-term.
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