Nio, Xpeng Fall Over 4%: What's Pulling Hong Kong EV Stocks Down Today?

Shares of Tesla Inc TSLA rivals and U.S.-listed Chinese electric automakers Nio Inc NIO, Xpeng Inc XPEV, and Li Auto Inc LI traded significantly lower in Hong Kong on Monday amid the weak global cues.

Macro Factors: The shares slumped as much as 6% during the morning trade, with the overall Hang Seng Index plummeting by nearly 3%. While its Asian peers showed a similar trend as Shanghai's composite index declined 2.51% and Japan's Nikkei 225′s slipped nearly 2%.

SEE ALSO: Why Alibaba, Other Tech Peers Are Sinking In Hong Kong Today

This came amid the rising COVID-19 cases in China's capital Beijing. The world's second-largest economy was already struggling to stamp out infections in the financial hub of Shanghai, and now a slew of cases in the capital has forced the shutdown to be extended to new locations.

Company In News: According to CnEVPost, Chinese brokerage firm Guosen Securities said it is bullish on Nio's potential in the high-end market. The brokerage gave the EV maker an "overweight" rating but did not offer a price target.

Meanwhile, under its "Power Up Plan," Nio also launched a new route that caters to EV drivers in the eastern Chinese province of Fujian. The company aims to promote energy replenishment experiences in popular tourist destinations.

The Shanghai Stock Exchange, in an announcement, said Li Auto's Hong Kong shares were added to the Shanghai-Hong Kong Stock Connect list. This mechanism was launched in 2014 to facilitate investors in the two regions to buy each other's stocks.

Photo courtesy: Nio