Analysis on the Stock Market Prospect of New Energy Vehicle Industry --Taking NIO, XPEV and LI as Examples

This article aims to evaluate the prospect of a new energy vehicle manufacturing stock market. We evaluated the expected risk and expected return of the three new energy vehicle companies through the Conditional Value at Risk (CVaR) and the Capital Asset Pricing Model (CAPM). First, the Capital Asset Pricing Model conveys that the new energy vehicle companies are in a period earning negatively to the market. The other aspect is based on the results of CVaR. By stating the mean-CVaR model to have side-by-side comparisons among returns of three stocks, we find that NIO's stock is the worthiest one to invest among the three stocks. Finally, based on forecasting of one-month period each-day returns of three stocks, we find that both NIO and LI's stocks are expected to have a positive each-day return and worthy of investing. The results of the article giving investors suggestions on investing in new energy vehicle companies. This article's conclusion provides people who hope to invest in the new energy vehicle companies' stocks advice and state theory foundations for advanced research of constructing portfolios in new energy vehicle companies' stock market.