Chinese electric vehicle stocks, including NIO Inc (NYSE:NIO), Li Auto Inc (NASDAQ:LI), and XPeng Inc (NYSE:XPEV), are trading higher Monday.
China, a key AI chip and electric vehicle market, faces several economic challenges, including weak growth in the second quarter and looming deflation.
On Monday, the People’s Bank of China (PBOC) announced that it would cut the seven-day reverse repo rate to 1.7% from 1.8% and reduce the one-year loan prime rate (LPR) to 3.35% from 3.45%. Additionally, China lowered the five-year LPR to 3.85% from 3.95%.
EV stocks also got a boost from reports of Nvidia Corp (NASDAQ:NVDA) developing a new AI chip tailored to comply with US export restrictions for China. EV companies also use AI chips.
Reports indicated Nvidia collaborating with Inspur, a key distribution partner in China, to introduce and distribute the new chip, tentatively named “B20.”
Investors can gain exposure to Nio through iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) and iShares MSCI China ETF (NASDAQ:MCHI).
XPeng Stock Prediction For 2024
Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of XPeng have an average 1-year price target of $10.0, representing an expected upside of 18.34%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on XPeng, while 1 analysts have bullish ratings. The street high price target from B of A Securities is $11.7, while the street low from Citigroup is $8.3.
Price Actions: At the last check on Monday, NIO shares were trading higher by 3.36% to $4.61 premarket. XPEV is up 3.31% to $8.72, and LI is up 2.55% to $20.15.
Also Read: NIO, Li Auto, and XPeng Stocks Rise After Strong June Delivery Numbers
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This article What’s Going On With Chinese EV Stocks Nio, Xpeng, Li Auto Stocks On Monday? originally appeared on Benzinga.com
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