The Chinese EV Onslaught Commences – Secure Your Position with These 5 EV Stocks

On August 14, U.S electric mobility major Tesla, Inc. (TSLA) announced a fresh round of price cuts for Model Y and Model 3 in China. This move was soon followed by further price cuts on August 16, in which Model S and Model X prices were reduced by $7,400 and $8,500, respectively. These moves aimed to boost sales and gain market […] August 25, 2023 [Option Sensei] [The Chinese EV Onslaught Commences – Secure Your Position with These 5 EV Stocks]( On August 14, U.S electric mobility major[ Tesla, Inc. (TSLA)]( announced a[ fresh round of price cuts]( for Model Y and Model 3 in China. This move was soon followed by[ further price cuts]( on August 16, in which Model S and Model X prices were reduced by $7,400 and $8,500, respectively. These moves aimed to boost sales and gain market share by undercutting intense competition from domestic automakers, to whom the auto major lost ground even as it is ramping up production in its Shanghai Gigafactory. Contrary to this being an isolated incident, carmakers in the U.S. and Europe are once again under siege after ceding ground to Japanese automakers with superior energy efficiency rendered desirable in the aftermath of the oil embargo between 1970 and 1990. However, this time around, the war is on climate change, the goal is rapid decarbonization and energy transition, the battleground is smart, connected, and electric mobility solutions, and the invaders are from the other side of the Pacific, beyond the Sea of Japan. Recently, after[ BYD Company Limited (BYDDY)]( delivered its five millionth electric vehicle, its founder Wang Chuanfu declared the “[time has come for Chinese brands]( And he has good reason to be optimistic. Chinese automakers have access to its vast domestic market, abundant supplies of resources, such as rare earths, which are critical for energy transition, and a government keen on seeing its domestic brands compete globally. China’s dominance in[ rare earth]( and other[ clean energy metals]( is back in the limelight after the[ recent export restriction on germanium and gallium](. With the trade war between the U.S. and China intensifying[ amid restrictions on exports of semiconductor chips]( and investments in other cutting-edge technology by the former, the latter is expected to keep[ upping the ante](. This could hurt the prospects of Western car manufacturers as they might be compelled to deal with increased input costs on top of exchange-rate headwinds and credit crunch due to the Federal Reserve ratcheting up the benchmark borrowing cost to 5.25%-5.50% from nearly 0% in a span of 16 months. While[ carbon border tax]( and other protective measures could provide temporary shelter for besieged Western automakers, the beneficiaries stand to lose more if the Chinese government cuts off their access to the massive domestic market on which the Chinese automakers could always fall back upon encountering turbulence overseas. In such a circumstance, former Aston Martin chief executive Andy Palmer might be justified in his statement that manufacturers in Europe and the US face a “real and present danger.” As the adage goes, “If you can’t beat them, join them,” here are five stocks that could be worthy of consideration in case the Western defenses do get breached: [BYD Company Limited (BYDDY)]( In addition to being a manufacturer and seller of transport vehicles, Chinese automaker BYDDY is… Continue reading at [INO.com]( SPONSOR [Uncover Hidden Profits in the AI Bull Market]( Even if you've just dipped your toe into AI, it's vital to know what's really happening... With the rise of big-name AI stocks, there's a select group of unnoticed "AI stocks" soaring alongside them. [Get the full scoop here, along with a curated list of 'backdoor' AI strategies.]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This is a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Wealthpop users . Wealthpop is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Wealthpop, and Wealthpop disclaims any liability for or arising from such statements and opinions. You are hereby advised that Wealthpop is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 Wealthpop. All rights reserved. Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019