Chinese electric automakers including Nio (NYSE:NIO), Xpeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) are slipping slightly to start the week. NIO stock and XPEV stock were both down about 3%, and LI stock down about 4% in trading today, though reports the companies will list on the Hong Kong Stock Exchange bode well for the future.
The latest downward pressure for this group came in the form of an editorial from Xinhua criticizing New Energy Vehicles (NEVs) over concerns about recalls and driving range. This compounds with broader pressures on these stocks from the semiconductor chip shortage and the U.S.-China trade war.
In brighter news today, both XPEV stock and NIO stock have filed to list on the Hong Kong Stock Exchange, with an application for LI stock yet to be submitted, Chinese outlet cls.cn reports. That’s great for investors, as it expands the trio’s access to capital. When the listing rumors were first reported, Reuters said the three companies were looking to raise a cumulative $5 billion from 5% of their expanded share capital.
However, good news just isn’t good enough to turn the tide of investor sentiment. NIO stock is under particular pressure this week, as it announced Friday it would be shutting down production at its Hefei plant for five days starting today.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.