- NYSE: NIO fell by 15.7% during Monday’s trading session.
- It was a bloodbath for Chinese companies as the Hang Seng Index hit a 13-year low.
- Chinese EV stocks drop as Tesla lowers the price of its vehicles in China.
Nio (NIO) saw one of its worst days of the year as Chinese stocks tumbled lower following President Xi Jinping's return for an unprecedented third term of power. On Monday, shares of Nio dropped by 15.7% and closed the trading session at a price of $9.45. Counter to the performance of Chinese ADR stocks, all three major US indices rose for the second straight session as investors brace themselves for big tech earnings this week. Overall, the Dow Jones added 1.3%, the S&P 500 gained 1.2%, and the Nasdaq rose higher by 0.9% during the session.
Nio stock price
It was a verifiable bloodbath for Chinese stocks on Monday in both Asian and US trading sessions. The Hang Seng index plummeted earlier in the day and hit a 13-year low price level as a result. Stateside, all three major Chinese EV makers were obliterated with XPeng (XPEV) and Li Auto (LI) falling by 11.9% and 17.4%, respectively. Elsewhere, Alibaba (BABA) hit a six-year low, and JD.Com (JD) hit a new 52-week low. PinDuoDuo (PDD) sank by 24.6%.
Another reason why Chinese EV stocks were hit so hard on Monday is that Tesla (TSLA) announced it is lowering the prices of both its Model Y and Model 3 vehicles in China. The Model Y will be discounted by about 9% and the Model 3 by about 5%. Investors are trying to determine whether demand for Teslas has slowed in China or if production costs are back on the decline. Either way, it is a curious move given that Tesla raised the prices as recently as June. Shares of TSLA were down by 1.5% on Monday.
NIO 5-minute chart 10.24.22
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