Published: Sept. 13, 2023 at 8:16 a.m. ET
Shares of Nio Inc. were knocked lower Wednesday, as investors expressed concerns about the European Union’s investigation into government subsidies that China-based electric vehicle makers receive.
The stock NIO dropped 2.3% in premarket trading, after rallying 5.3% over the previous two sessions.
Meanwhile, shares of Tesla Inc. TSLA gained…
Shares of Nio Inc. were knocked lower Wednesday, as investors expressed concerns about the European Union’s investigation into government subsidies that China-based electric vehicle makers receive.
The stock
NIO
dropped 2.3% in premarket trading, after rallying 5.3% over the previous two sessions.
Meanwhile, shares of Tesla Inc.
TSLA
gained 1.1% ahead of the open. Tesla has cut prices more than once this year to fend off competition.
The EU’s investigation comes as European Commission President Ursula von der Leyen said that global markets were being flooded with electric cars made in China, which are priced artificially low because of huge state subsidies, as the Associated Press reported.
“As we do not accept this distortion from the inside in our market, we do not accept this from the outside,” von der Leyen said, per the AP. “So, I can announce today that the commission is launching an anti-subsidy investigation into electric vehicles coming from China.”
Among other China-based EV makers, shares of Xpeng Inc.
XPEV
slid 3.4% and Li Auto Inc.’s stock
LI
shed 2.1%.
Other stocks to watch after the opening bell include those of BYD Co.
BYDDY
and Geely Automobile Holdings Ltd.
GELYY
175
,
which began sales of EVs in Europe this year, the AP reported.
Nio’s stock has run up 18.9% over the past three months through Tuesday, while the Global X Autonomous & Electric Vehicles ETF
DRIV
has lost 6.3%, the iShares MSCI China ETF
MCHI
has slipped 3.3% and the S&P 500 index
SPX
has gained 2.1%.
