EV Showdown 2024: Tesla, BYD, NIO, XPeng, Li - Which Offers Greater Value?
Portfolio Pulse from Surbhi Jain
A KPMG and Global Semiconductor Alliance survey indicates 'automotive' as the top revenue driver for the semiconductor industry in 2024, with EVs expected to lead. The S&P Global Mobility forecasts a rise in BEV sales for 2024. Tesla (TSLA) showed a 130% return in 2023, while Chinese EV companies like Li Auto (LI), XPeng (XPEV), and BYD (BYDDF, BYDDY) had varied returns. NIO (NIO) saw a 6% loss. BYD offers the best value with a 0.9 EV/Sales (FWD) ratio, while Tesla appears overvalued with 7.96 EV/Sales (FWD). Li Auto trades at a favorable 1.58 EV/Sales (FWD) ratio. Investors should consider these valuations in the growing EV market.
January 02, 2024 | 1:20 pm
News sentiment analysis
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NEGATIVE IMPACT
NIO experienced a 6% loss in 2023 and has negative earnings, which may concern investors despite the growth potential in the EV sector.
NIO's loss in 2023 and negative earnings could negatively impact investor sentiment in the short term, despite the overall growth in the EV sector.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla's stock showed a 130% return in 2023 but faces valuation concerns with a high EV/Sales (FWD) ratio of 7.96, indicating potential overvaluation.
Tesla's high EV/Sales (FWD) ratio suggests the stock may be overvalued, which could lead to a negative short-term impact on its stock price as investors reassess its growth prospects.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
XPeng, with a 78% return in 2023 and an EV/Sales (FWD) ratio of 2.71, may attract investors looking for growth in the EV sector.
XPeng's decent return in 2023 and moderate EV/Sales (FWD) ratio may keep investor interest steady, with a neutral short-term impact on the stock price.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
BYD offers the best value among EV stocks with a low EV/Sales (FWD) ratio of 0.9 and strong delivery numbers, indicating potential for stock appreciation.
BYD's low EV/Sales (FWD) ratio and record delivery numbers suggest it is undervalued, which could lead to positive short-term momentum in its stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Li Auto trades at a favorable EV/Sales (FWD) ratio of 1.58 and reports profitable growth, making it an attractive investment in the PHEV market.
Li Auto's favorable EV/Sales (FWD) ratio and consistent profitability suggest the stock may be undervalued, potentially leading to a positive short-term price movement.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85