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Win Mcnamee | Getty ImagesDETROIT – President Joe Biden's plan to quadruple tariffs on China-made electric vehicles is unlikely to stave off the threat of more Chinese cars and trucks on U.S. roadways. Automotive and trade experts say the increased tariffs are a near-term protectionism act that may delay, but won't stop, Chinese automakers from coming to the U.S. with EVs. The EV tariffs, including other increases regarding battery materials, were among new tariff rates on $18 billion worth of Chinese imports. The quality and build of vehicles by Chinese automakers have gotten significantly better in recent years, as the Chinese government has subsidized their operations to grow domestic production. GM and others have found it hard to compete against budget and mainstream Chinese vehicles, including EVs.
Persons: Joe Biden, Win Mcnamee, Joe Biden's, It's, Dan Hearsch, Stellantis —, Warren Buffett, BYD, Morgan Stanley, Tim Hsiao, Lincoln Organizations: White, Getty, DETROIT, Communist, U.S . Automotive, Motors, U.S, — GM, Ford Motor, Chrysler, Warren, EV, Wall Street, China Association of Automobile Manufacturers, U.S . Vehicles, Lincoln Nautilus, Volvo, Biden Administration Locations: Rose, Washington , DC, China, Mexico, Americas, U.S
On the other hand, BYD (equal weight) will likely face another round of downward revisions from analysts due to market saturation in China, Hsiao wrote. "Although the macroeconomic and operational environment is certainly challenging, we think the negative forces influencing the trio of EV stocks are more or less [already reflected] in stock prices," Hsiao told clients. Li Auto has booked several profitable quarters in a row, demonstrating solid execution of model launches and effective cost management, Hsiao told clients. Morgan Stanley has boosted total sales volume for the company by 12% in 2024 and 8% in 2025, reflecting stronger demand for new models. Morgan Stanley has a price target of $10 for Nio's ADRs, equal to roughly 72% upside from the previous close of $5.80.
Persons: Morgan Stanley, Tim Hsiao, Hsiao, Li Auto, Li, Xpeng, Xpeng's, Nio's ADRs Organizations: Li Locations: China, Europe, Latin America, Southeast Asia
Hesai can outshine peers with its laser imaging, detection and ranging technology for electric vehicles, Morgan Stanley said. Analyst Tim Hsiao rated the stock overweight with a price target of $26.50. Hsiao's price target implies an upside of 39.5% from Monday's close. "We think Hesai outshines peers, with its superior scale and margin, and its strong project pipeline." The company also has a strong project pipeline that includes partnerships with established automakers such as Li Auto and SAIC and newer entrants including Jidu and Xiaomi .
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