Shares of Li Auto, a leading Chinese electric vehicle (EV) manufacturer, plummeted by 8.07% on Wednesday, October 3, 2024, amid concerns over potential tariffs on Chinese EV imports by the European Union (EU).
The steep decline came as France, Greece, Italy, and Poland are set to vote on Friday to impose tariffs of up to 45% on Chinese EV imports. If approved, the proposal would clear the way for the EU to implement these tariffs, dealing a significant blow to Chinese EV makers that have been expanding their presence in the European market.
Li Auto was not alone in facing the market's wrath. Other Hong Kong-listed Chinese EV manufacturers, such as Xpeng, NIO, Geely, Great Wall Motor, Leapmotor, and BYD, also experienced substantial share price declines. Xpeng saw the most significant drop of 12.5%, while NIO's stock plunged by 8.7%.
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