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The No. 1 Reason These Three EV Stocks Will Soar [Full Explainer]

·1 min read

Last week, Aaron and I updated audiences to the recent Chinese electric vehicle policy. Its government would take “drastic” measures to boost manufacturing output. Consequently, this could be extremely good news for Chinese EV stocks like NIO (NIO). And today, I share why the latest developments out of China portend bullish things for EV stocks in general.

In a nutshell, China’s PMI shows a sharp pivot in manufacturing capacity month-over-month. And a rise in EV stock prices typically follows. Why? Because roughly 60% of EV battery manufacturing is done in China. So, when it’s down, that means that 60% of battery capacity for the world is handcuffed. When it’s up, it means that EV makers around the world are about to see improving production trends. And that’s the most important aspect for young companies with full orderbooks and not enough supply.

Well guess what? China’s economic activity is improving, which means the big picture for EV stocks should improve along with it. That’s especially true for EV stocks Lucid (LCID), Rivian (RIVN), and NIO.

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Catch the full episode at Hypergrowth Investing on YouTube.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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