[Investment Opportunity] Analysis of New Energy Vehicle Stocks Trend

Recent rumors suggest that the $7,500 tax credit for consumers purchasing electric vehicles may be canceled. This policy change could have a profound impact on the new energy vehicle market and the stock prices of automakers.

1. Market Background and Policy Impact

1.1 Overview of the Global New Energy Vehicle Market

In recent years, the global new energy vehicle industry has experienced rapid development. In 2024, the global ownership of electric vehicles (including pure electric vehicles, plug-in hybrid vehicles, and extended-range electric vehicles) reached approximately 42 million, a year-on-year increase of about 50%. Among them, China's electric vehicle ownership was about 23.4 million, accounting for more than half of the global total. The rapid growth of the new energy vehicle market is mainly attributed to policy support from governments worldwide, technological advancements, and increased consumer acceptance.

1.2 Impact of the Tax Credit Cancellation

Tax credits are one of the key factors stimulating consumer purchases of electric vehicles. If this policy is canceled, it will directly affect consumers' willingness to buy, thereby negatively impacting the sales and profits of new energy vehicle manufacturers. Especially for automakers that rely on government subsidies and tax credits to maintain market share, this policy change could pose significant challenges.

2. Technical Analysis

2.1 Technical Analysis of U.S. New Energy Vehicle Stocks

Taking Tesla (TSLA) as an example, as a global leader in electric vehicle manufacturing, its stock price has always been closely watched by the market. From a technical perspective, Tesla's stock price has shown a volatile trend recently. Analysis of the K-line chart reveals that Tesla's stock price has experienced pullbacks after multiple touches of resistance levels, but the overall trend remains upward. However, if the news of the tax credit cancellation is confirmed, Tesla's stock price may face short-term selling pressure, leading to a decline.

2.2 Technical Analysis of Hong Kong New Energy Vehicle Stocks

New energy vehicle stocks in Hong Kong, such as BYD Company Limited (002594.HK), are also worth noting. As a leading electric vehicle manufacturer in China, BYD's stock price has shown a steady upward trend in recent years. From a technical perspective, BYD's stock price has rebounded quickly after multiple pullbacks, indicating strong support. However, if the tax credit is canceled, BYD's stock price may also be affected to some extent. Considering its leading position in the new energy vehicle sector and strong market competitiveness, its long-term stock performance remains promising.

3. Fundamental Analysis

3.1 Fundamental Analysis of U.S. New Energy Vehicle Stocks

Tesla, as the global leader in the electric vehicle market, has strong fundamentals. Tesla leads in electric vehicle technology, autonomous driving technology, and energy storage, with a large user base and strong brand influence. However, if the tax credit is canceled, Tesla's sales and profits may be impacted. That said, given its advantages in technological innovation and market expansion, Tesla is expected to address this challenge by reducing costs, improving efficiency, and launching new products.

3.2 Fundamental Analysis of Hong Kong New Energy Vehicle Stocks

BYD, as a leading new energy vehicle manufacturer in China, also demonstrates strong fundamentals. BYD has a presence in electric vehicles, hybrid vehicles, and public transportation, with a complete industrial chain and strong independent R&D capabilities. Additionally, BYD is actively expanding into overseas markets and has established partnerships with several international automakers. If the tax credit is canceled, BYD may face some market pressure. However, given its leading position and strong competitiveness in the new energy vehicle sector, BYD is expected to maintain its market position through technological innovation, market expansion, and cost control.

4. Investment Views and Conclusion

In summary, although the cancellation of the tax credit may have a short-term negative impact on the stock prices of new energy vehicle manufacturers, considering the long-term development trend of the new energy vehicle industry and the fundamentals of these companies, we remain optimistic about their investment prospects.

For Tesla in the U.S. market, despite potential short-term impacts from the tax credit cancellation, its leading position and innovation capabilities in the electric vehicle sector will provide strong support for its long-term growth. Therefore, we believe Tesla's stock price may rebound after a short-term correction.

For BYD in the Hong Kong market, its leading position in China's new energy vehicle market and strong competitiveness will help it navigate the challenges posed by the tax credit cancellation. Additionally, BYD's advantages in overseas market expansion and industrial chain layout will further support its long-term development. Thus, we are also optimistic about BYD's investment prospects.

Investment Recommendation: For investors bullish on the new energy vehicle industry, consider buying the dip when stock prices of new energy vehicle manufacturers correct to reasonable valuation levels after the tax credit cancellation is confirmed. Meanwhile, investors should closely monitor policy dynamics, market changes, and the fundamental performance and technological innovations of new energy vehicle manufacturers to adjust their investment strategies accordingly.

Stock Codes: Tesla (TSLA), BYD Company Limited (002594.HK)

Conclusion: Although the cancellation of the tax credit may have a short-term impact on the stock prices of new energy vehicle manufacturers, we remain optimistic about their long-term investment prospects given the industry's growth trend and the companies' strong fundamentals. Investors should stay vigilant about market dynamics and the fundamental performance of new energy vehicle manufacturers to seize investment opportunities.$Tesla(TSLA.US) 

Disclaimer: The views expressed herein are solely personal opinions and do not constitute investment advice. Investors should conduct their own risk assessments and seek professional advice before making investment decisions. The market carries risks, and investments should be made with caution.