What's Going On With Chinese EV Stocks Like Nio, XPeng, Li Auto On Wednesday? (CORRECTED)

Editor’s Note: The story has been corrected to remove Lucid Motors from the article which was erroneously added as a Chinese EV stock

Chinese electric vehicle stocks soared after China slammed the European Union import tariffs on the EV industry and assured support for the industry.

NIO Inc NIO, XPeng Inc XPEV, Li Auto Inc LI, and ZEEKR Intelligent Technology Holding ZK traded up on Wednesday.

The EU slapped the additional tariffs on the existing duties of 10% on BEV imports, CNBC reports.

Also Read: Chinese Luxury EV Company Zeekr Clocks 100% Growth in Q2 Deliveries, Margin Boost Amid Domestic Price War, Tariffs

Interestingly, the EU slashed import duties on major electric automakers, including Tesla Inc TSLA and China’s BYD Co BYDDF, SAIC Motor Corp, and Geely Automobile Holdings GELYF.

China challenged the EU’s view that the Chinese EV industry was distorting European competition.

The Chinese EV industry has been battling weak domestic demand and protectionist tariffs. Lately, the industry has received a boost from China’s plan to boost its stimulus program to subsidize passenger vehicle purchases.

Reports indicating China’s cash-for-clunkers trade-in program’s potential to boost EV sales have also positively impacted Chinese EV stocks.

According to Counterpoint Research, China accounted for 52% of the global Battery Electric Vehicle sales after the U.S. during the first quarter of 2024.

Price Actions: NIO stock traded higher by 2.21 % at $3.94 at the last check Wednesday. XPEV is up 2.82% at $6.96, LI is up 3.66% at $21.06.

Also Read:

• XPeng Q2 Earnings: 30.2% Deliveries Growth, Margin Boost From Volkswagen Partnership, Q3 Outlook And More

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