Electric vehicle stocks experienced mixed trading Wednesday as investors weighed the potential impact of Donald Trump's election victory on the industry.
Leading drops among Chinese EV equities, Nio (NIO, Financials) sank 7% in premarket U.S. trading, XPeng (XPEV, Financials) plummeted 7%, and Li Auto (LI, Financials) lost 7%. Kandi Technologies (KNDI, Financials) declined 1%; Zeekr Intelligent Technology (ZK, Financials) dropped 7%.
Early trading saw Rivian Automotive (RIVN, Financials) plummeting 5% and Lucid Group (LCID, Financials) falling 2%, which further affected U.S.-based EV companies worried about probable cuts in EV tax credits and incentives.
On the other hand, Tesla (TSLA, Financials) jumped 15% since investors expected possible advantages for the business in a less-subsidized environment. Dan Ives of Wedbush Securities claims that Tesla's size and reach give a competitive edge, particularly in a climate where Chinese EV manufacturers could encounter increased tariffs restricting their U.S. market entrance.
For its autonomous and complete self-driving capabilities, Ives pointed out Tesla might profit from a shortened timescale. He did, however, warn that if political relations between Tesla CEO Elon Musk and Trump deepen, the company would have difficulty with consumer demand. Furthermore, rising trade conflicts can endanger Tesla's sales in China.
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