Nio’s stock rises, in face of report that tariffs on EVs from China could be raised

Nio’s stock rises, in face of report that tariffs on EVs from China could be raised


Shares of Nio Inc.
NIO,
+2.62%
rose 1.3% in morning trading Thursday, as investors appeared to shrug off a report in The Wall Street Journal that the Biden administration is mulling raising tariffs on electric vehicles made in China. The rally in the China-based EV maker’s stock comes after it tumbled 10.2% on Wednesday to snap a five-day win streak. Shares of other China-based EV makers were mixed, as XPeng Inc.’s stock
XPEV,
+0.86%
gained 0.6% and Li Auto Inc.’s stock
LI,
-0.36%
slipped 0.4%. Citing people familiar with the matter, the WSJ report said the Biden administration, which has left in place Trump-era tariffs on about $300 billion of goods from China, is discussing raising tariffs on goods including EVs, EV battery packs and solar products. Keep in mind that EVs from China are already subject to a 25% tariff, and that GeoRev data from FactSet showed that all the revenue generated by Nio, Xpeng and Li Auto over the past 12 months was from China. Nio’s stock has dropped 17.7% year to date, while Xpeng shares have climbed 41.5% and Li Auto’s stock has soared 62%. In comparison, the iShares MSCI China ETF
MCHI,
+2.05%
has declined 15.6% this year and the S&P 500
SPX,
+0.43%
has advanced 23.3%.



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