NIO stock and other electric car stocks are ready to turn the corner higher after the Chinese government announced it was considering “extreme measures” to boost manufacturing output.
That’s major news for Chinese EV stocks like NIO. China is the heart of the EV economy. In fact, 60% of global EV battery manufacturing happens there. So, as goes China’s manufacturing output, so goes the EV industry. The faster companies can produce these vehicles, the faster they’ll achieve profitability. And their stocks will quickly rise.
China has also announced that it’s extending tax breaks for first-time electric vehicle buyers. Those were set to expire at the end of this year. But considering continued economic choppiness and supply chain issues, it’s extending the breaks into 2023 – and possibly beyond.
That should drive continued demand. And with both demand and supply drivers bolstered, the bull thesis on EV stocks is strengthening. That’s especially so for NIO, one of Luke’s favorite EV stocks to buy today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.