Nio began deliveries of its recent ET7, an upscale electric sedan, on Monday, March 28, 2022.
U.S.-traded shares of Chinese electric vehicle makers were amongst those hit by a dramatic sell-off Monday, as investors soured on non-state-run Chinese firms following a weekend of dramatic political developments in China.
Shares of Li Auto ended the day down 17%, Nio’s closed nearly 16% lower, and Xpeng Motors’ dropped 12% in trading in Latest York, while shares of larger BYD closed down over 8%. Other outstanding Chinese firms including Alibaba and Tencent Music Entertainment suffered similarly dramatic declines.
The sell-off followed a weekend wherein President Xi Jinping appeared poised for an unprecedented third term as China’s leader after naming a series of loyalists to the Politburo standing committee, the inner circle of power in China’s ruling Communist Party.
Under Xi’s leadership, China’s government has increased restrictions on speech and movement and tightened regulations on technology firms. Analysts see further constraints ahead, with Bernstein’s Mark Schilsky writing in a Monday morning note that Chinese stocks at the moment are “uninvestable.”
Xpeng individually on Monday debuted a new edition of its advanced driver-assist system, called XNGP. The brand new system, a direct rival to Tesla’s Autopilot, allows for limited hands-free driving in some urban environments in addition to on highways.