Why Tesla Rivals Nio, Xpeng Are Struggling In Hong Kong Today

Shares of U.S.-listed Chinese electric automakers Nio Inc. NIO, Xpeng Inc. XPEV, and Li Auto Inc. LI struggled in Hong Kong on Wednesday.

Macro Factors: The overall Hang Sang Index continued its downtrend amid weak global cues and a grueling lockdown in Shanghai.

The Shanghai COVID-19 lockdown has disrupted production for electric-vehicle makers such as Tesla Inc TSLA and Nio, potentially hitting their bottom lines. The Chinese government has vowed to keep existing protocols in place until infections fall rapidly, but cases are still skyrocketing.

Shares of the U.S.-listed Chinese electric automakers had a subdued closing on the American bourses too.

Company In The News: A Chinese business inquiry platform Tianyancha showed on Tuesday that Ideal Innovation Lab Technology (Jiangsu) Co., Ltd. was established on April 7. The shareholder information showed that the firm is wholly owned by electric-vehicle maker Li Auto.