2 Electric Vehicle Stocks Wall Street Loves

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Wall Street is favoring some of the newly emerged electric vehicle (EV) stocks, particularly Chinese companies that generated record EV sales last year. With significant support from the government and a speedy economic revival, Chinese EV companies Li Auto (LI) and Niu Technologies (NIU) should benefit significantly in the coming months. As a result, Wall Street analysts are optimistic about the prospects of these stocks.

The electric vehicle industry has registered significant growth over the past year, making it one of the most profitable industries amid the COVID-19 pandemic. With lower maintenance costs and higher efficiency, as well as  supportive government policies, the momentum of the EV industry is likely to continue in the long run. Global EV sales are expected to rise by 70% in 2021, according to an IHS Markit report.

Also,  China’s EV market, which is the largest in the world, is expected to rebound quickly in tandem with the country’s economic growth.

With rising per capita income increasing the demand for EVs, Wall Street analysts expect Li Auto, Inc. (LI - Get Rating) and Niu Technologies (NIU - Get Rating) deliver solid returns in the future.

Li Auto, Inc. (LI - Get Rating)

Headquartered in Beijing, China, LI is engaged in the designing, development, manufacturing and sales of smart electric sport utility vehicles (SUVs). The company offers Li ONE, which is a six-seat electric SUV equipped with a range of extension systems and smart vehicle solutions. LI also sells peripheral products and provides related services, such as charging stalls, vehicle internet connection services and extended lifetime warranties.

LI delivered 2,300 Li ONEs in February, which represents a 755% year-over-year increase. Also in February, LI established a new research and development center in Shanghai dedicated to the development of cutting-edge EV technologies. And in January, the company’s  Li ONE received a G rating, the highest safety rating per the safety evaluation results published by the China Insurance Automotive Safety Index Management Center.

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William K. 3 weeks ago Member's comment

If China had all of the vehicle safety rules that we have in the USA things would not be nearly so good for their auto companies.