The Long Investor

$NIO TOP 20

Added 2023-09-13 09:00:05 +0000 UTC

So the EU this morning has announced that they are unhappy with the Chinese EV makers flooding the EU market and suggested that the Chinese markers are heavily subsidised by the Chinese government (which is of course is not true)and have mentioned that they are assessing punitive tariffs on Chinese EV makers.

I expect this is Audi or BMW putting pressure on EU policy makers.....Audi, remember tried to get $NIO to change the name of their vehicles in Europe and lost their case.

Two things from this:

1 .Chinese EV makers are now being treated as a serious threat to the traditional legacy car manufacturers market share. The issue for them is that China can produce cars at large scales and thus the economies of scales will be lower, coupled with highly educated and low labour costs, this is a difficult area for European and US makers to compete against.....hence why $TSLA now builds in China and why VW decided to work with $XPEV instead of against them.

2. The best that the EU can do is slow down the spread of Chinese EV makers in europe, they will not be able to stop them selling cars in the EU and the tariffs could start a trading war against China too....an area where the EU does not want to compete with China on.

So we can see that $NIO and $XPEV are down in the PM and I uploaded the $XPEV chart earlier and said that we expect to see Wave C next, so this news may help the price go lower. We also still expect $NIO to come down lower too, ideally only to $9 but let's see what happens.

For me, both charts are still showing an impulsive wave and a move higher is still next once both of their respective Wave C counts are in.