Shares of Li Auto (LI) are moving up after the company posted fourth-quarter earnings, with other Chinese automaker stocks getting a lift off of their strong results. While there has been a decrease in EV demand across the US, will China see the same weakness in its auto market?

Kraneshare Senior Investment Strategist Anthony Sassine joins Yahoo Finance to discuss the Chinese auto market as well as the broader auto sector, highlighting EVs and how their potential success going forward.

When asked how EV-focused auto stocks may perform this year, Sassine says: “Over the long-term, I think EVs are going to be fine. Because we’re trying to replace 1.3 billion ICE [Internal Combustion Engine] cars with EVs… So, there’s still a long way to go. But, in down cycles like this year where we’re going through a transitional period between two growth waves. The high-quality cars will float to the top. We’re seeing that with Li Auto. Li Auto was only $28 or $26 like two weeks ago. Right now, after that bump you’re seeing it at $40 [per share].”

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Editor’s note: This article was written by Nicholas Jacobino