Factors Influencing Stocks in the New Energy Vehicle Industry based on Multiple Linear Regression Models

Abstract

With the promulgation of the Paris Peace Treaty, governments are paying more and more attention to environmental protection, and the world has put forward higher requirements for energy conservation. New energy becomes a focal spot, and more people are willing to invest in the new energy industry. Therefore, the question “which company is the worthiest to invest?” bother every investor. BYD, for example, has been China's new energy vehicle sales champion for four consecutive years. From January to October this year, the company's sales of new energy vehicles reached 172,000 units, increasing its market share to 20 percent and continuing to rank first. The Tesla Model 3, which is owned by Tesla Motors, has sold 158,925 units in the United States, occupying almost half of the sales of new energy vehicles in the United States. This paper takes Tesla as an example to study the influencing factors of new energy stocks, and this paper selects the closing price of Tesla from 2017 to the end of 2021. It studies the corresponding daily USD to RMB exchange rate, Dow Jones index, P/E ratio and CPI data for analysis, using S&P linear regression. In conclusion, the stoke of Tesla is most sensitive to Dow Jones and least sensitive to exchange rate. New energy is an important area of future energy development in the world and the one with the greatest potential. The trend of new energy stocks reflects the stockholders' expectation and bullishness on the future prospect of new energy.