Tuesday’s trades to start 2024 will need to overcome the overbought, overly bullish conditions. Tesla (TSLA) is the first stock to watch. Effective Monday, some of Tesla’s Model 3s lost eligibility for tax credits worth up to $7,500.
Other models losing the tax credit include the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, and Chevrolet Blazer EV (per a Reuters report).
The EV bust cycle has a strong risk of resuming. It ended in July when TSLA stock peaked at $300. Shares fell to below $200, only to rise to above $260. A general stock market rally boosted Tesla shares.
In Asia, China Evergrande’s EV share sale lapsed. The bankrupt subsidiary of China Evergrande Real Estate, China Evergrande New Energy Vehicle Group, does not have a date set on the share sale. This may indirectly hurt the valuations in related Chinese EV firms.
Investors have three EV stocks to watch: Nio (NIO) rose from $7.00 to $9.00 after a Saudi Arabian firm, CYVN, invested $2.2 billion.
Li Auto (LI) is trying to break out of a downtrend that started last August 2023. XPeng (XPEV) remains in a firm downtrend.
Here is the latest chart on LI stock: https://www.baystreet.ca/quotedata/li/charts/
On Jan. 1, the largest battery EV firm, BYD Co, posted a 61.9% increase in vehicle sales in 2023. It sold nearly 3.02 million units. BYDDF stock is the fifth stock to watch. It gained 11.62% in the last year.
