We all know that Elon Musk and Tesla (NASDAQ:TSLA) are major parts of the electric vehicle landscape right now. But Musk is also warning legacy automakers getting involved in the field, among others, that the Chinese EV market is more robust than it might seem at first glance. Despite this, most Chinese EV stocks are in open decline in Thursday afternoon’s trading session. Li Auto (NASDAQ:LI) lost modestly in Thursday afternoon’s trading, while Nio (NASDAQ:NIO) was down nearly 2%. XPeng (NASDAQ:XPEV) lost over 2%, and Tesla itself lost nearly 13% for delivering the grim news.
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Musk’s assessment wasn’t anyone’s idea of good news, except the Chinese auto market, perhaps. Musk revealed that the Chinese car companies were “…the most competitive car companies in the world.” He looked for them to have “significant success outside of China,” though he acknowledged this would depend a lot on what kind of protectionist measures those markets took in response to their arrival. Musk noted that barring some kind of trade barrier, Chinese EV companies would “…pretty much demolish most other companies in the world.”
Not Everyone is So Sure
Musk’s dire predictions aren’t exactly universally held. A YouTube channel, China Observer, has repeatedly come out against the Chinese electric vehicle market, once referring to Chinese electric vehicles as “…a total scam.” Featuring footage of distressed drivers bemoaning the lack of infrastructure and performance, it’s a night-and-day difference against Musk’s opinion.
However, while Chinese electric vehicle makers face the same challenge as the rest do in cold weather, one report suggests that may change. Chinese startup Greater Bay reveals it has battery technology that can charge from flat to 80% in just six minutes, even in cold weather. The secret? Heating the battery pack.
Which Chinese EV Stocks are a Good Buy Right Now?
Turning to Wall Street, TSLA is actually the laggard right now, as this Hold-rated stock boasts a 23.55% upside potential against its average price target of $223.65. Meanwhile, LI stock is the leader here as a Strong Buy-rated stock with a $53.58 average price target and a 93.74% upside potential.
