Electric Vehicle Investment Analysis Based on Indicators: Evidence from NIO, BYD and, TSLA

Abstract

The electric vehicle industry has been operated for plenty of decades, but it has gained very little popularity worldwide. However, research has shown that several countries are gaining interest in this industry. Therefore, electric vehicles will likely gain popularity within the next decade. Investors are interested in this industry since it is unique and has yet to be explored fully. It is necessary for potential investors to conduct electric vehicle investment analysis, hence they get to make informed decisions. Indicators are the best metrics to carry out investment analysis, which give insight into the behavior of finances, thus determining whether the investment is favorable. This paper is a case study of three automotive companies (i.e., NIO, BYD and TESLA) that have ventured into electric vehicle production. Conducting investment analysis concerning electric vehicles is necessary before venturing into the business. This study encourages evaluating a firm and, thus, predicting its future performance. Investment analysis enables one to reduce losses and increase returns by making informed decisions. A general financial strategy can be obtained from conducting an investment analysis. Data obtained from the record will be utilized to calculate various indicators. The corresponding results are critically analyzed and discussed to explain all the factors that should be considered before investing. These results also capture areas on which research still needs to be carried out, which shed light on guiding further exploration in this field.