A Chinese EV Company That Represents Remarkable Value

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Tesla shares have plunged to $150 per share as the U.S. carmakers faces headwinds, but there's another rising EV star out there that has a much more solid balance sheet

Over the years, one of my most profitable investment research techniques has been to look for companies whose stock has been dragged down by negativity around the market in which they operate, even though they themselves are well-run, efficient, and profitable, characteristics that will enable them to survive a downturn and emerge stronger should competitors go under or cut back operations significantly when times are tough.

87 billion USD. That is almost the definition of a strong balance sheet, and it will enable Li to ride out weakness in the market for some time if that is what transpires. Of course, to take this trade, you have to believe that EV sales will resume growth at some point, but with no real alternative non-gas powered vehicles on the horizon and the world still focused on emissions reduction, that looks likely to happen before too long.

 

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