5 EV Winners Of Trump’s Softened Stance On China Tariffs

Donald Trump had a busy first day in office, revoking former President Biden’s executive orders and announcing new measures that continue to send shockwaves through multiple industries. One thing missing from his remarks was tariffs on China, something that was a big part of his election campaign.

Has Trump’s stance on China tariffs softened now? Is this a strategic move to tone down his aggressive stance on China in order to continue business relationships with the Asian country? We believe the President is intentionally taking a softer stance and this sentiment is echoed by Chinese stocks as well. We looked at some Chinese EV stocks that enjoyed a good day of trading in the absence of tariffs on China on Tuesday.

To come up with the list of 5 EV winners of Trump’s softened stance on China tariffs, we only considered stocks with less than a $25 billion market cap.

5. Li Auto Inc. (NASDAQ:LI)

Li Auto is a little-known but highly successful EV maker that could provide serious competition to the likes of Tesla and BYD. The company’s third-quarter deliveries were up 45% YoY, coming in at 152,831 vehicles. The sales grew at a growth rate of 28.4%.

The EV maker is also pursuing AI ambitions. It incorporates AI technology into its vehicles to achieve autonomous driving. Apart from that, it has serious ambitions in robotics and other AI technologies as well. The company’s investments in AI integrations in its vehicles give it a head start over competitors.

Li Autos stock is so undervalued that it trades just around one times sales. The obvious risk is that it is a Chinese stock and could become entangled in a trade war. However, when Trump didn’t double down on China tariffs on his first day in office, the stock went up by over 5%, signaling further upside ahead.

4. Niu Technologies (NASDAQ:NIU)

Niu Technologies manufactures scooters, bicycles, mopeds, and electric motorcycles in China. The company has a distribution network in 53 different countries, making it a strong global player despite its small size. It has a per-year production capacity of two million units.

The company’s growth within China continues to be impressive, with a growth rate of 12.5% for its scooters division. On the global stage, the company’s e-scooter sales grew by 17.5% in the third quarter. The company’s new line of scooters is available in the US and Europe and is poised to contribute significantly to its future growth.

The stock is down almost 50% from its October highs, presenting a good opportunity for investors hunting for multi-bagger stocks.