China’s new car market is now 40% electric and hybrid, industry data show. That contrasts with a mere 7.2% across the United States, JL Warren Capital’s Junheng Li said in a note, adding that penetration is only expected to tick up to 12.5% in the next two years. Ford and GM are pulling back on their electric car plans. New Treasury rules that take effect Jan. 1 also make many U.S. EVs ineligible for federal tax credits because the cars still rely on China-made batteries. In China, where Beijing clearly wants to support its electric car industry, the market is not only expected to grow but also get more competitive for incumbents and newcomers. More than 100 new EV models are expected to launch next year, HSBC China autos analysts said in a Dec. 20 report. “Among EVs, we prefer BYD and Li Auto for their continuously strong monthly sales volumes and better-than-peers’ profitability,” the analysts said. HSBC has buy ratings on both stocks. Earlier this month, the analysts raised their price target for U.S.-listed Li Auto to $56. That’s nearly 70% above where shares closed Thursday. Li Auto sells premium-priced cars that come with a fuel tank to charge the battery, a big draw for range-conscious consumers. The startup’s deliveries have soared well above its peers – and beyond its own expect …
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[mwai_chat context=”Let’s have a discussion about this article:nnChina’s new car market is now 40% electric and hybrid, industry data show. That contrasts with a mere 7.2% across the United States, JL Warren Capital’s Junheng Li said in a note, adding that penetration is only expected to tick up to 12.5% in the next two years. Ford and GM are pulling back on their electric car plans. New Treasury rules that take effect Jan. 1 also make many U.S. EVs ineligible for federal tax credits because the cars still rely on China-made batteries. In China, where Beijing clearly wants to support its electric car industry, the market is not only expected to grow but also get more competitive for incumbents and newcomers. More than 100 new EV models are expected to launch next year, HSBC China autos analysts said in a Dec. 20 report. “Among EVs, we prefer BYD and Li Auto for their continuously strong monthly sales volumes and better-than-peers’ profitability,” the analysts said. HSBC has buy ratings on both stocks. Earlier this month, the analysts raised their price target for U.S.-listed Li Auto to $56. That’s nearly 70% above where shares closed Thursday. Li Auto sells premium-priced cars that come with a fuel tank to charge the battery, a big draw for range-conscious consumers. The startup’s deliveries have soared well above its peers – and beyond its own expect …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
