Written by Cláudio Afonso | [email protected] | LinkedIn | X
Dan Ives, Managing Director of Wedbush Securities and Senior Equity Analyst, said on Friday that China EV makers will “aggressively go after Europe” as Biden administrations prepares to increase tariffs from 25 to 100 percent next week. As a case in point, Ives mentioned BYD and Nio, both of which are present in several European markets.
“You’re going to see the Chinese players aggressively go after Europe. I think that’s the next step, when you look at BYD, Nio, and others,” the analyst said.
About Zeekr’s initial public offering (IPO), the analyst highlighted the performance of the stock in its first day as the shares of the premium brand from the Geely group surged over 34 percent.
“Ironically, talking about what we saw today in terms of the [Zeekr] IPO, ironic timing just showing how successful some of these Chinese EV players are,” Ives stated.
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About a possible expansion to the US, the analyst said “it’s a matter of time” highlighting the increase adoption of electric vehicles over the last years.
“But when it comes to the US, look, it’s a matter of time. I mean, they are going to come here. And when you look at the 313 area code and what’s happening in Detroit. A lot of EVs. I mean, there’s a lot of credibility on the line here for GM, for Ford and others. By the administration, you’re starting to see more and more pressure. That’s why we’re seeing these tariffs”.
When asked about the concern on delisting Chinese firms from the NYSE as happened with the ride-hailing giant Didi, Ives dismissed the idea. However, he admits a “more restrictive process” for IPOs of Chinese firms.
“I don’t think there’s a concern. I think a lot of that’s already been vetted. You know, the fact that it actually got here and rang the bell, and I think also it’s important in terms of what we saw for New York Stock Exchange in terms of IPO. We are going to see some of these IPOs come through, but it’s going to be a much more restrictive process. But I do not expect what we saw with Diddy to see a similar thing here,” he said.
On Friday, all the other US-listed Chinese EV stocks — Nio, Xpeng, Li Auto — dropped between 2 and 5.50 percent on reports that the US administration is set to increase the tariffs by nearly 400 percent next week.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
