Probably only I knew the reason of selling down in the last few days..
China is soon going to announce the new regulation to further cut down the current subsidies offered to EVs.
But, do not be panic. This reduction of the subsidies was scheduled since 2016, it happened early last year as well, and the plan was that the whole subsidies will be totally phased out by 2020.
The insider disclosed that in the new guidance the EVs with capacity of under 150kms will lose government subsidies, 150-250km will also lose part of the subsidies, on the contrary, over 300kms models will receive more subsidies.
therefore, Government is aiming to push the industry to produce more high quality EVs with higher battery performance.
Bear in mind, the strategic direction of China, as everyone knows, is still to push the electrification which we could also see their policies released recently including Party and Government institutions will take lead to use EVs, EVs green plates rolled out all over China, retaining the offer of deduction of 10% EV purchasing tax, more of the buses and taxis are in progress of electrification, and the discussion of schedule to ban the ICE vehicles and so on....
Therefore, as a LT believer of Electric cars, I have been accumulating all the way when the sp drops....
GXY Price at posting:
$3.52 Sentiment: Buy Disclosure: Held
