Barclays Says Buy These 3 EV Stocks
2022.07.05 19:11
Barclays analyst Jiong Shao is telling clients to increase their exposure to China’s three biggest electric vehicle (EV) startups.
Shao believes Nio (NYSE:NIO), Li Auto Inc (NASDAQ:LI) and Xpeng Inc (NYSE:XPEV) are well-positioned to benefit from the China reopening and economic stimulus trade.
His comments come after all three companies posted strong quarterly EV deliveries.
Shao sees the EV sector as a huge area for government consumption stimulus going forward. Barclays reminds investors that the number of policy documents from both the local and central authorities on consumer subsidies for new energy vehicle purchases is increasing.
Last week, all three companies exceed their respective second-quarter deliveries. Shares of these companies previously soared on strong retail sales expectations, as well as comments that China will seek to increase car consumption.
Nio shares are down 1.6% in pre-open Tuesday, while Li Auto stock price is up almost 0.7%. XPeng shares are nearly unchanged.
