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Why are Chinese EV shares crashes

After enjoying strong gatherings in the last week of February, prominent Chinese electric vehicle makers (EV) witnessed sharp and unexpected market drops on March 3.

Specifically, NIO (NYSE: NIO) and Li Auto (Nasdaq: LI) increased by 12.18 % at the end of last month from $ 4.27 on February 25 to $ 4.79 on February 27 and 24.89 % from $ 26.36 on February 24 to $ 32.92 on February 26, only to Collapse 4.32 % and 9.73 % on Monday.

Perform the stock market in LI and NIO in the initial hours of trading on Monday.
NIO and LI price charts 24 hours. Source: Google

Looking at the latest developments related to EV makers, it seems that the stock market is primarily an exaggerated reaction to Delivery reports Both companies Release At the beginning of March.

Li and NIO shares are disrupted despite the growth of delivery

Li Auto unveiled delivery operations in February as it reaches 26263, which, although they may seem low due to the expectations that the Tesla (Nasdaq: TSLA) and BYD laid down, constitutes an increase of 29.7 % compared to the same month in 2024.

Likewise, NIO has unveiled 13,192 cars that were delivered in the second month of 2025, which, although it is less than my character, constitutes a more impressive growth of 62.2 % on an annual basis.

Are the shares of EV makers disrupted amid post -deposit fluctuations?

In fact, it is difficult to find the root cause of the correction of the Chinese EV makers, which means that the phenomenon of profits or frequent repetitions increases causes significant fluctuations regardless of the contents are the most likely perpetrator.

Nasdaq: NVDA is a strong profit report published in late February, and the sale that came in the aftermath of which is the latest high -level example in this direction.

Another potential explanation of the facts and statistics apparently may appear. The fact that Nio registered Only 12 cars In the Netherlands in February, headlines are born with the same way to sell Tesla to one EV in South Korea in January 2025.

At the same time, self -driving news from China showed the program’s inability to work without error, including the most successful version, as Li Auto L7.

However, it is relatively unlikely that the data from the Republic of the People has a great impact on the shares listed on the American stock exchanges, apparently “complete self -driving” of Tesla. Worse performance In the streets of the Asian nation from all the tested models.

Distinctive image via Shutterstock

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