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However, most Chinese EV stocks declined in price recently after Chinese Industry and Information Technology Minister Xiao Yaqing said consolidation in the sector is needed because there are “too many” EV makers in China. Furthermore, the EV industry is being negatively affected by the current, global, semiconductor shortage, which is expected to persist for some time.
Against this backdrop, we think it could be wise to avoid Chinese EV stocks BYD Company Limited (BYDDY), XPeng Inc. (XPEV), and Kandi Technologies Group, Inc. (KNDI). Their current valuations are not in sync with their growth prospects.
