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Tesla's Discounts Cause Havoc For Chinese EV Stocks: Nio Plunges 7%

Benzinga · 01/06/2023 06:49

Shares of Chinese electric vehicle startups XPeng Inc. (NYSE:XPEV), Nio Inc. (NYSE:NIO) and Li Auto Inc. (NASDAQ:LI) were declining sharply in premarket trading on Friday.

What Happened: Much of the weakness could be traced back to EV pioneer Tesla Inc.’s (NASDAQ:TSLA) decision to lower its Made-In-China vehicle prices in reaction to softness in demand and competitive pressure.

See Also: Best Chinese Stocks

Tesla’s lowest price point in China is now under $34,000. Given Tesla’s share in the Chinese market, the price cuts could stimulate demand for its vehicles, potentially impacting sales of its competitors.

Price Action: According to Benzinga Pro data, Nio slid 6.45% to $10.16 in premarket trading on Friday. XPeng plunged 10.08% to $10.70 and Li Auto declined 6.90% to $21.45.