The Tesla stock price has imploded this year, making it one of the worst-performing companies in the Nasdaq 100 indices. TSLA has dropped in the last five consecutive weeks and is hovering near its lowest level since November 4. It has tumbled by 45% from its highest level this year, erasing over $700 billion in value. 

Best EV stocks to buy as Tesla crashes

Tesla stock price has crashed because of the ongoing competition and the fact that it has become a target as US moves to impose tariffs. Canada is said to be considering imposing huge tariffs on Tesla vehicles because of Musk’s close relations with Donald Trump. 

Tesla’s growth trajectory has waned, with European sales plunging by the fastest pace in years. It is facing substantial competition from other companies, especially those from China. The best EV stocks to buy are from China, and are companies like XPeng, Li Auto, and Nio.

Read more: Tesla stock price forecast: 4 reasons TSLA is imploding

XPeng (XPEV)

Xpeng is one of the best EV stocks to buy and hold this year as its growth trajectory gains steam. The most recent monthly figures showed that it delivered 30,453 in February, up by 570% from the same period a year ago. This growth was driven by XPeng Mona, whose sales jumped above 15k for three consecutive months. 

The most recent results showed that XPeng’s revenue rose by 18.4% in the third quarter to $1.25 billion. Its gross margin rose to 15.3%, a big improvement from the negative 2.7% it experienced a year earlier. 

Analysts are optimistic that the XPeng earnings will do well gong forward. The average estimate is that its fourth-quarter revenue rose by 22% in Q4 to 16 billion CNY. This growth will bring its annual revenue to 41.4 billion CNY, followed by 73 billion CNY this year. 

In our last Xpeng stock price forecast, we estimated that it will rebound to $40.33, up by 97% from the current level. 

Li Auto (LI)

Li Auto is another EV stock to buy and hold as its growth momentum accelerates. Its stock has jumped from last year’s low of $17.56 to $27.67. 

The company has continued doing well this year. Its recent delivery figures rose to 26,263 in February, a 29.7% increase from the same period a year earlier. These deliveries means that the company has now sold over 1.19 million vehicles since inception.

The third-quarter results showed that Li Auto revenue rose by 23.6% to $6.1 billion, while the gross margin eased a bit to $1.3 billion. 

Analysts expect that Li Auto’s results will show that its revenue rose by 6.7% in the fourth-quarter to CNY 44.56 billion, bringing the annual figure to 145.76 billion yuan. They expect that its annual revenue will be 191 billion yuan.

Nio (NIO)

Nio is another EV stock to buy even as it remains near its lowest level this year. The company has done well as its deliveries jumped. Total deliveries rose by 62.2% in February to 13,192, bringing the two-month deliveries to 27,055. 

Nio is a contrarian stock to recommend as it remains 45% below the highest level in 2024. Analysts expect that its fourth-quarter revenue rose by 18% to 20.19 billion RMB, bringing the annual figure to 68 billion. Nio’s revenue will then be supercharged to 97 billion RMB this year.

Read more: Nio stock price could enter beast mode, thanks to these catalysts

Summary

There are chances that China EV stocks will continue doing well in the long term because of the local and international opportunity. Many Chinese EV companies have already crashed, meaning that the surviving ones like XPeng, Li Auto, BYD, and Nio will thrive.

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The Hang Seng Tech Index continued its recovery rally on Wednesday, joining other global indices like the Nikkei 225 and the Shanghai Composite. The index, which tracks the biggest Chinese technology companies, rose to H$5,635, its highest level since February 2022. It has risen by about 90% from its lowest level in 2023. So, what’s driving the surge, and what next? 

China boosts 2025 GDP forecast

The Hang Seng Tech Index has done well this year as investors embraced risk and moved to big technology companies. 

This growth continued this week after Beijing announced its growth targets for the year. Officials now target a growth rate of about 5% even as the country embarked on a trade war with Washington. Donald Trump added more tariffs on the country as he seeks to attract more investments in the country.

China also lowered its Consumer Price Index (CPI) to about 2% fo the first time in two decades, while the fiscal deficit jumped to 4%, the highest level in over three decades. These numbers mean that Beijing is focused on stimulating growth this year. 

China has also embarked on more activity that will boost the economic growth. It wil develop multiple open source models for artificial intelligence (AI) and to provide industrial subsidies to the country. Beijing is also working to boost the production capacity of the C919 aircraft. 

Therefore, the Hang Seng Tech index is doing well as investors anticipate more government support and stimulus measures. 

Chinese tech stocks are surging

The Hang Seng Tech Index, which is seen as China’s Nasdaq 100, has risen, helped by the performance of most of its constituent companies. 

XPeng stock price surged by 73% this year and 117% in the last 12 months, making it the best-performing companies in the index. It has become one of the top EV stocks in China as it continued to boost its products and market share. Its most recent results showed that its growth momentum gained steam in the fourth quarter. 

SMIC stock price has jumped by 68% this year and over 217% in the last twelve months as demand for Chinese semiconductors rose. It is doing well as many companies like Huawei and Alibaba have moved to use its products to boost output. 

Kingdee Software stock price has soared by 65% this year as demand for cloud computing solutions rose in China. Its annual recurring revenue (ARR) rose to over RMB 3.15 billion, representing a 24.2% annual increase. Kingdee is a tech company that offers solutions like finance, human resource, and supply chain cloud.

The other top Hang Seng Tech companies are the likes of Alibaba Health, Alibaba Group, Xiaomi, JD Health, KingSoft, and Kuaishou Technology, and JD.com.

Just a handful of Hang Senf Tech stocks have crashed this year. The most notable laggards were firms like East Buy Holdings, Trip.com, Hair Smart Home, and Nio.

Hang Seng Tech Index analysis

HSI chart by TradingView

The weekly chart shows that the Hang Seng Tech index has been in a recovery path in the past few months. It has soared from $2,730 in 2022 to near $6,000. The index has moved above the key support at $5,437, the highest swing on October 7. It has invalidated the double-top chart pattern, pointing to more gains.

It has moved above the 23.6% Fibonacci Retracement level and 50-week moving averages. The index has moved above the ascending trendline that connects the lowest swings since 2022. 

Therefore, the HSTECH index will likely keep rising as bulls target the 50% retracement level at H$6,870, up by about 22% from the current level. A drop below the support at $5,430 will invalidate the bullish view.

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Xiaomi stock price is firing on all cylinders, making it one of the best-performing companies in the Hang Seng index. It has soared by over 300% in the last twelve months and is beating Apple (AAPL) whose shares have jumped by less than 50%. This surge has brought its market cap to over $165 billion. 

Why Xiaomi stock price is beating Apple

Xiaomi is one of the best-known technology companies globally, thanks to its quality products like smartphones and other smart home devices. 

Its smartphones are some of the most popular brands because of their lower prices and their high quality.

Xiaomi is often compared to Apple, a company that makes the most premium smartphones and other items. While Apple dominates the premium market, Xiaomi has the biggest market share in the lower end. 

Xiaomi stock price has done better in the past few months because of its strong performance and innovation, which exceeds what Apple is doing. For example, Apple abandoned its EV project in 2023, while Xiaomi launched its highly popular vehicle last year.

These actions have made it a faster-growing company than Apple. The most recent results showed that Xiaomi’s revenue rose by 30% in the third quarter to 92.5 billion RMB, while the gross margin rose to 20.4%. 

Xiaomi’s smartphone and IoT business has continued to thrive as its sales rose by 16.8% to 82.8 billion yuan. Similarly, the smart EV and other initiatives jumped by 52.3% to 9.7 billion yuan, with the gross margin reaching 17.1%. This is notable since its EV business is often a low-margin one at first. 

Apple is neither growing nor innovative

Apple, on the other hand, is no longer growing, and is facing substantial challenges in its operations. For example, the most recent financial results showed that its revenue rose to $124 billion in the December quarter, up from $119 billion a year earlier.

Apple’s main challenge is that its smartphone sales that account for most of its revenue have stalled because users are keeping their phones for long. In the past, the upgrade cycle was more frequent since the iPhones looked different. 

Apple has not come up with a new successful product in ages. Its most recent product launch was the Vision Pro, which many analysts believe has failed. Before that, the company launched its Apple Watch product, achieving strong performance.

Apple’s services segment, its biggest hope, is also slowing. The recent results revealed that its services sales rose to $6.57 billion from $6.28 billion. 

A recent report by IDC shows why Xiaomi is thriving. Its 4Q’24 shipments were 42.7 million, higher than the 40.7 million it shipped a quarter earlier. Its sales were up by 4.8% higher than in the same period a year earlier. 

In contrast, Apple’s shipments in Q4 were 76.9 million, lower than the 80.2 million it shipped in Q3. The shipments were about 4.1% lower than those it sold in 2023. As such, while Xiaomi is growing its market share, Apple is largely stagnant.

Xiaomi stock price analysis

The weekly chart shows that the Xiaomi share price has surged in the past few months. This surge happened after the company formed a cup and handle pattern whose upper side is at $35.80. A C&H pattern is one of the most bullish signs in the market.

Its depth was 77%, meaning that the Xiaomi stock target is at $63.25, up by 20% above the current level. The MACD and the Relative Strength Index (RSI) have all pointed upwards, signaling that it has the momentum to keep going. 

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The Apple stock price has done well in the past decades, transforming it into the biggest company in the world with a market cap of over $3.54 trillion. It has risen by over 38% in the last twelve months, beating several companies in the Magnificent 7. So, is Apple’s valuation justified?

Apple is a highly expensive company

The ongoing Apple stock price surge has helped to make it a highly expensive company with a $3.54 trillion valuation. 

This is a hefty valuation considering that the company made a net profit of over $96 billion in the last financial year. 

Apple now has a forward price-to-earnings ratio of 32.54, higher than the sector median of 27.37. Its non-GAAP PE ratio is also 32, higher than the sector median of 22. 

These valuation metrics are higher than the S&P 500 index average of 21. They are also higher than those of Microsoft, which has a forward P/E ratio of below 30.

Apple is a good company with some of the best products in the technology sector globally. And to a large extent, it deserves a premium valuation. 

However, we believe that Apple’s valuation is stretched since the firm is slowing substantially and is no longer an innovative company. 

Apple has become a giant company over the years because of its strong innovation and the quality of its services and products. Recently, however, Apple has largely lost its innovative edge, as Mark Zuckerberg noted.

The company launched the iPhone in 2007, a product that has become its biggest recenue earner. Over time, the company has launched other numerous products like the iPad, Apple Watch, airpods, and Vision Pro.

Apple Watch and the iPad were highly successful, but the Vision Pro has yet to achieve this success. The company also launched Apple Services, which has become a focus of its operations. Apple Services have become a big part of its business as it generated over $96 billion in annual revenue.  

Apple’s growth expectation has slowed

Apple’s growth is expected to continue slowing in the coming years. Analysts expect that its second quarter revenue will be $94 billion, up by 3.65% from what it made a year earlier.

The company will then make $89.35 billion in the next quarter, a 4% increase from a year earlier. This growth will then bring its annual revenue to $409 billion, followed by $442 billion next year.

The company’s earnings per share (EPS) are expected to be $7.32 this year, up from $6.08 a year earlier.

Apple lacks a clear catalyst to supercharge its stock in the coming years. IDC predicts that smartphone sales will slow by about 4% this year. And with the next iPhone expected to be similar to the last one, the odds are that its sales will be slow this year. 

Analysts have a mild expectation about Apple, with the average stock forecast being $252, higher than the current $235. This also explains why Oppenheimer analysts downgraded Apple from outperform to perform. Jefferies also downgraded AAPL stock to underperform.

Read more: Apple stock price analysis: can AAPL’s valuation be justified?

Apple stock price analysis

The daily chart shows that the AAPL share price peaked at $260 in December last year and then retreated to the current $235. It is oscillating at the 50-day and 100-day moving averages and a crucial level that was its highest point on July 15. 

The stock remains above the ascending trendline that connects the lowest swings since August last year. Therefore, there is a likelihood that the AAPL share price will continue falling, as sellers target the next support at $223. 

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Boeing stock price crashed this week as concerns about tariffs rose. BA shares fell to a low of $158, its lowest level since December 9, and 16% from its highest point this year, and 40% below the highest point in 2024. So, is it safe to buy the Boeing stock dip?

Boeing stock crashes as risks rise

Boeing shares have remained under pressure since 2019, when it peaked at $436. It then crashed to a low of $89 in March 2020 and rebounded to $277 in 2021. It has remained under constraints as it has moved from one crisis to another.

Read more: The Boeing crisis: will the company make it out alive?

The current crisis is the recently announced tariffs by Donald Trump. He has added a 25% tariff on steel and aluminium, two metals that the company uses widely. 

Trump has also added tariffs for goods coming from top countries like Canada, Mexico, and China. These countries have also announced retaliatory tariffs against the US dollar.

Boeing is the biggest American exporter, meaning that it may become a target of other countries. For example, a big tariff on Boeing planes would have a big impact on its business as many airlines would switch to comparable planes from Airbus. 

Airbus is a European company that may continue seeing more demand and gaining market share against Boeing. This trend may gain steam in the coming months as the ongoing trade war accelerates.

Analysts are upbeat about BA stock

Meanwhile, analysts are optimistic about the Boeing share price and its business. Besides, the company has not made any major negative headlines in the past few months. That is a good thing since its design issues have contributed to its weakness in the past few years.

The average estimate among analysts is that Boeing’s revenue will grow by 17.45% in the first quarter to $20 billion. The highest estimate is its revenue will be $21.25 billion. 

Analysts also expect that Boeing’s revenue will then grow by 20% in the next quarter and 27% this year to $85 billion. This double-digit growth is primarily because of the low base from last year when the company idled some production.

Boeing’s profitability is also expected to make marginal improvement as long as it stays out of trouble this year. The loss-per-share this quarter will be 99 cents, lower than the $1.13 it lost a year earlier.

Boeing’s loss per share this year will be $1.49, followed by $4.24 in the following year. It lost $20.38 in the last financial year. 

Boeing will also benefit from the conclusion of its recent strike action in the US, leading to the resumption of 737, 767, and 777 planes. 

Therefore, barring any major issues, there is a likelihood that Boeing’s business will bounce back this year. 

This explains why the average analyst estimate is for the Boeing stock price to rise to $195 from the current $151.

Boeing share price analysis

BA chart by TradingView

The daily chart shows that the BA share price has dropped in the past few days as investors anticipated that it will be a collateral damage for the ongoing tariff war. It has slipped from $188.28 on February 25 to the current $160. 

Boeing has dropped below the crucial support level at $176, the lowest level in October 2023. It has also moved below the 50-day and 200-day moving averages, while the Stochastic RSI has moved below the oversold level.

Therefore, the short-term outlook for the Boeing stock is bearish, with the next level to watch being at $145. The stock will likely rebound later this year as the new management implements its turnaround strategy.

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