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Tuesday's Biggest Moving Stocks




On Monday morning, a Hong Kong court ordered China Evergrande to liquidate. The busted real estate firm has more than $300 billion in liabilities.

Investors may need to learn more about the judicial system. Western investors will need to present their arguments through the Chinese court system.

The enormity of the liquidation spooked China tech investors. Yesterday, PDD lost 8.2%, Joyy (YY) down 2.08%, Alibaba (BABA) down 0.58%, and JD (JD) down 1.68%.
Watch for the typically volatile China-based stocks to try to break out of a yearlong downtrend.

In the tech sector, Super Micro Computers (SMCI) added 10% in after-hours trade. The firm expects net sales of $3.7 billion to $4.1 billion in its March quarter. This surpasses analyst expectations of $2.8 billion.

In the EV sector, Lucid (LCID) rallied by an impressive 27.17%. Nikola (NKLA) was the sixth most active stock, rising by 12.38% to $0.80. Truck EV supplier Rivian (RIVN) added 5.43% to $16.43. Speculators are making a potentially risky trade by betting on EV firms other than Tesla (TSLA). Tesla has the biggest market share and has the pricing power, thanks to its early entry and strong brand awareness. Competitors risk losing more money if Tesla cuts prices again.

EV investors should rent (trade) stocks like Fisker (FSR), Lucid, Polestar (PSNY) and Nikola. Look for TSLA stock to stabilize before re-initiating a position.



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