Investors who bought the rumors on Chinese electric vehicle (EV) stocks sold the news, as strong deliveries led to selling pressure.
Nio (NYSE:NIO) was down 1%, XPeng (NASDAQ:XPEV) was down 2.1%, and Li Auto (NASDAQ:LI) was down nearly 5% in pre-market trading this morning. This came after all three reported
Nio delivered 18,012 electric cars, XPeng delivered 20,115, and Li delivered 50,353 hybrids during December. BYD (OTCMKTS:BYDDF), which is not traded directly in New York, led the way with 340,178 deliveries during the month.
No One Wants Electrics?
While many American analysts buyers “don’t want electrics, they want Teslas (NASDAQ:TSLA),” Chinese brands are increasingly dominant.
BYD now , and Li is growing faster than Tesla. European buyers seem to be holding off on purchases, .
American politicians label China a . But it’s the U.S. that now than any nation ever has. China is also dominant in green technologies like solar panels and EVs. Efforts by General Motors (NYSE:GM) and Ford Motor (NYSE:F) to compete are .
The Biden administration’s incentives for buying EVs are focused on . But that’s
The best test of these new market assumptions is Nio, which is far ahead of its rivals in its export drive. Nio has gotten $2.2 billion from Abu Dhabi to fund European exports. It will launch a low-price brand called Firefly in Europe later this year.
Li, meanwhile, is undergoing its own electric transition, with plans to launch an EV costing under $30,000.
Chinese EV Stocks: What Happens Next?
China’s EV dominance will increasingly be a political issue. Car companies are important employers. Chinese EVs threaten to take the entire market away from European and American brands. That may be why Chinese EV stocks sold off on good news.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
