Chinese Auto Makers Plunge as Covid-19 Surge Prompts Delivery Cuts
December 27 2022 - 11:36PM
Dow Jones News
By Bingyan Wang
Shares of Chinese auto makers plunged as growing Covid-19
outbreaks across China halted vehicle production, triggering
delivery cuts and sparking worries of a sales decline in the
world's biggest car market.
Electric-vehicle makers XPeng Inc., Li Auto Inc. and NIO Inc.
dropped by as much as 9.0%, 8.4% and 11%, respectively, in Hong
Kong. Shenzhen-listed BYD Co. shed as much as 3.5% in Wednesday
morning trading.
The losses followed U.S. rival Tesla Inc.'s 11% decline
overnight after the EV maker extended the production suspension at
its Shanghai plant due to surging Covid-19 infections.
NIO on Tuesday cut its fourth-quarter delivery estimate, citing
pandemic-related production challenges and continued supply-chain
constraints.
"As most Chinese citizens have been affected by Covid before Jan
re-opening, we recognize major mid-high-level new energy vehicle
brands' weekly delivery were pulled back," Citi analysts said in a
note.
Covid-19 infections have surged in China in recent weeks after
Beijing pivoted from its zero-Covid policy, taking down workers at
car manufacturers and their suppliers.
Tesla supplier Contemporary Amperex Technology Co., the world's
largest EV battery maker, dropped 3.9% in China.
NIO was recently 9.1% lower at 80.35 Hong Kong dollars
(US$10.30), XPeng declined 8.1% to HK$38.40 and BYD dropped 2.5% to
255.68 yuan.
Hong Kong's benchmark Hang Seng Index rebounded and was last
2.1% higher at 20001.05.
Write to Bingyan Wang at bingyan.wang@wsj.com
(END) Dow Jones Newswires
December 27, 2022 23:21 ET (04:21 GMT)
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