Portfolio Overview
The Electric Vehicle Portfolio holds eight positions spanning the EV ecosystem: lidar technology (Hesai Group), charging infrastructure (ChargePoint), global EV manufacturers (NIO, XPeng, Li Auto), and key suppliers (BorgWarner, Volex, Yadea). The portfolio is globally diversified across US, Hong Kong, and London exchanges.
Recent Performance
Over the past week, the portfolio saw modest gains in Chinese EV makers (XPeng +0.61%, Li Auto +0.58%) and BorgWarner (+2.36%), while NIO (-8.25%) and Yadea (-44.20%) continued to underperform. Hesai Group remains under pressure (-21.01%) due to ongoing trade tensions and slower-than-expected lidar adoption. Volex (-8.42%) and ChargePoint (-0.69%) have been relatively stable.
Key Drivers
- Chinese EV Demand: XPeng and Li Auto benefited from positive delivery numbers and government incentives, while NIO faces margin pressure and delivery delays.
- Lidar Headwinds: Hesai continues to struggle with US-China tech restrictions and competitive pricing from domestic rivals.
- Charging Infrastructure: ChargePoint remains range-bound as the market awaits federal funding clarity.
- Supplier Strength: BorgWarner’s hybrid and EV component orders support its recent uptick.
Risk Concentration
The portfolio has significant exposure to Chinese EV names (NIO, XPeng, Li Auto, Yadea, Hesai) which collectively represent over 60% of the portfolio. This concentration introduces geopolitical and regulatory risk. Additionally, Yadea’s steep decline warrants monitoring but does not yet trigger a close given the minimum holding period.
What to Watch
- Q2 earnings reports from NIO, XPeng, and Li Auto due in August.
- US tariff policy updates on Chinese EV components.
- BorgWarner’s Q2 results and EV order backlog.
- Any signs of stabilization in Hesai’s revenue growth.
No Changes This Week
All positions remain within their minimum holding periods and no thesis-breaking events have occurred. The portfolio continues to reflect a long-term conviction in the EV transition.
Disclaimer: This is not investment advice. Past performance is not indicative of future results. Investing involves risk, including loss of principal. The portfolio may not be suitable for all investors. Consult a financial advisor before making investment decisions.