Costco Stock: 3 Tailwinds to WatchTesla, Chinese Rivals NIO, XPeng and Li Auto Dealt a Major Blow

Although the market share of Elon Musk's group has declined in recent years as most legacy carmakers now offer electric models, the manufacturer of the Model Y and Model S remains the benchmark for green vehicles.
Canadian Pension Fund Reduces Tesla Stake
The determination of Chinese vehicle manufacturers has thus enabled them to become formidable rivals to Tesla. This rivalry extends into investors' portfolios. This is the case of the Canada Pension Plan or CPP Investments.
CPP Investments has significantly reduced its holdings, owning 368,867 Tesla shares as of Sept. 30, according to a regulatory filing. This means that the Canadian fund slashed almost half of its Tesla stake in the third quarter.
The Canadian pension fund was tougher on Chinese electric vehicle makers NIO, XPeng and Li Auto. It sold virtually all its stake in these three companies in the third quarter.
CCP Slashes Chinese Stakes
CPP reduced its NIO American Depository Receipts (ADRs) to 90,740 at the end of the third quarter.
The Canadian fund sold 1.4 million Li Auto ADRs during the third quarter.
CPP ceded 971,113 XPeng ADRs during the same period. Its stake now is 2,087 ADRs.
The Canadian group does not explain the reasons for these liquidations, but the ADRs of NIO are down by 58.6%, the ADRs of Li Auto are down by 29% and XPeng's ADRs lost 77.3%.
It would seem that the Canadian fund is no longer confident in the performance of these stocks in the short term. This strategy contrasts with that of billionaire George Soros, who has increased his stake in Tesla and continues to embrace NIO.
Tesla, NIO, XPeng and Li Auto dealt a major blow. Now is a good time to buy?