China’s electric vehicle market, the world’s largest accounting for two-thirds of global EV sales, is undergoing a brutal consolidation that threatens the survival of most domestic manufacturers. Amid this carnage, Tesla Inc. (NASDAQ: TSLA) has emerged as one of the few companies positioned to profit from the industry shakeout, with its Shanghai factory demonstrating remarkable resilience through strong delivery growth and maintained profitability despite the intensely competitive environment.
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Tesla Stock Soars 20% on Musk’s $1B Buy – Rally Sustainable?
Tesla shares surged 20% following CEO Elon Musk’s $1 billion stock purchase, his first open-market buy since 2020. The rally comes as EV buyers race to secure $7,500 tax credits before they expire September 30. However, underlying sales challenges and competitive pressures raise questions about the sustainability of this momentum.
read moreGoldman Sachs Bullish on 10 China Stocks as ‘Magnificent 7’ Rivals
Goldman Sachs has identified ten Chinese companies—including Tencent, Alibaba, BYD, and Xiaomi—as high-growth prospects, comparing them to the US ‘Magnificent 7.’ The bank’s analysts highlight favorable regulations, AI investments, and government support for private enterprises as catalysts for a projected 13% earnings growth over the next two years. These firms span sectors like e-commerce, EVs, gaming, and pharmaceuticals, reflecting China’s push for self-sufficiency and global expansion. Goldman also notes the Chinese equity market’s undervaluation and improved M&A regulations as additional tailwinds.
read moreTesla Market Cap Falls Below One Trillion Amid Stock Decline and Concerns
Tesla’s market cap has fallen below $1 trillion after shares dropped over 8%, marking a 25% decline this year. The downturn follows disappointing feedback on its automated driving features and concerns over CEO Elon Musk’s political activities, which have sparked protests and affected sales. Additionally, Tesla reported earnings that missed expectations, with a notable drop in automotive revenue and vehicle registrations in key markets.
read moreStocks Set to Open Up Ahead of Fed Powell Speech; Tech and Auto Stocks Lift Indexes
Stock futures point to a higher open as investors await Federal Reserve Chair Jerome Powell’s economic report. Semiconductor and auto stocks drive market gains, with Huizhou Desay SV Automotive, Cambricon Technologies, and Foxconn Industrial Internet seeing notable increases. Powell’s speech on interest rates will be closely watched for insights into the central bank’s future direction.
read moreGlobal Stocks Mixed After Wall St Closes Another Winning Week
Global stocks were mixed as European markets remained little changed, with the FTSE 100 rising slightly while the DAX and CAC 40 edged down. In Asia, the Nikkei 225 and Shanghai Composite index saw slight declines, while Hong Kong’s Hang Seng rose. The Biden administration is expected to announce plans to raise tariffs on Chinese exports, sparking selling of some automakers. U.S. consumer sentiment weakened, leading to a rise in Treasury yields, and U.S. crude and the dollar saw slight increases in trading.
read moreChinese Stocks Surge on Strong Manufacturing Rebound, EV and Battery Rally
Chinese stocks surged as manufacturing rebounded, with the CSI 300 Index rising 1.6% and the Shanghai Composite Index adding 1.2%. EV makers and battery materials producers led the rally, while gold stocks also saw gains. Offshore funds bought $3 billion of yuan-denominated stocks in March, contributing to the positive market sentiment.
read moreChinese Automaker BYD to Invest Billions in Brazilian Electric Vehicle Plant
Chinese automaker BYD is set to invest around 563 million euros in Brazil to establish a new factory, creating 10,000 jobs. The company, known for its electric vehicles, aims to transition to producing more environmentally friendly cars. This move comes as BYD surpassed Tesla in global electric vehicle sales in the fourth quarter of 2023, signaling a potential shift in the market.
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