Morgan Stanley is cautious about the outlook for Chinese electric vehicle stocks, dominated by seasonal factors

Analysts at Morgan Stanley are wary of the outlook for Chinese electric vehicle stocks such as NIO and Xiaopeng Motors, saying the companies could experience seasonal stagnation after achieving record sales last December. A Morgan Stanley study said: "Our latest round of inspections of channels and supply chains suggests that the EV market will start modestly in 2022. The sector is expected to see a boost in sales ahead of the (late January) holiday, after which store foot traffic/deliveries could drop significantly.

Previously, the association expressed optimism about the sales of electric vehicles in January 2022 and the whole year. However, the impulse of many car companies in December last year squeezed the short-term sales prospects. According to the current scheduling situation, it is expected that in January, Weilai, Ideal, Xiaopeng, Volkswagen ID series, Tesla and other car companies will not decline, because the order volume in hand is saturated, but it is likely to rise. The independent brand electric vehicles may be pulled back. In addition, considering the opening of the Spring Festival holiday at the end of January, seasonal factors and repeated epidemics in many places will affect the number of offline car sales leads and sales.

As of press time, U.S. stock Xiaopeng Automobile rose more than 5.7%, Weilai Automobile rose more than 5.5%, and Ideal Automobile rose more than 3%. Hong Kong stocks opened, Xiaopeng Automobile, Ideal Automobile both opened about 1%.