Nio Down 6%, Xpeng Falls 5.8% In Hong Kong Today: What's Driving The EV Stocks Down?

Shares of U.S.-listed Chinese electric automakers and Tesla, Inc TSLA rivals Nio Inc NIO, Xpeng Inc XPEV, and Li Auto Inc LI fell for the third day in a row in Hong Kong on Friday.

Macro Factors: Amid rising COVID-19 cases and a subdued outlook for auto manufacturers in China, the Chinese EV–makers' shares echoed similar notes on US exchanges. The surge in cases has led companies in China to reduce 2022 projections.

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The overall Hang Seng Index was also trading on a muted note at 10:50 a.m. Hong Kong time. Its Asian peers SGX Nifty and Shanghai's SSE Composite Index expressed similar sentiments. 

Company In News: Nio has increased its stake in the joint venture with Jianghuai Automobile Group Co (JAC) to 50%, a year after the new company was established, according to the CnEVPost report.

Price Action: According to data from Benzinga Pro, Nio fell 6%, Li Auto shed 4% in U.S. markets, and Xpeng, after hiccups, ended Thursday 2% lower.