An increasing focus on transitioning to a zero-emissions environment, rising government spending, and burgeoning charging infrastructure are driving the electric vehicle (EVs) industry's growth. And since China has been witnessing rapid EV adoption, Wall Street analysts expect Chinese electric vehicle stocks NIO (NIO), XPeng (XPEV), and Li Auto (LI) to rally 50% or more in price in the near term. So, please read on for details.The automotive industry experienced a rough phase last year. However, the increasing cost of fossil fuels and government initiatives to transition to a zero-emission environment should keep driving the electric vehicle (EV) industry’s growth. In addition, rising investments from automakers and the expansion of charging infrastructure are expected to play major roles in driving the EV market’s growth.
China, which is considered the global leader in the production and sale of EVs, saw an explosion of EV consumer uptake this year, with a 177.6% increase in EV adoption year-over-year. The November sales of new-energy vehicles in China grew 16.8% over the past month.
Given this backdrop, we think it could be worth adding Chinese electric vehicles stocks NIO Inc. (NIO), XPeng Inc. (XPEV), and Li Auto Inc. (LI) to one’s watchlist. Wall Street analysts expect them to rally by more than 50% in price in the near term.