EV stocks plunge in Hong Kong as overall market moves lower

It's another sell-off unrelated to the fundamentals of these companies, as investors worry about the prospect of aggressive interest rate hikes by the Federal Reserve.

Electric vehicle (EV) stocks traded in Hong Kong saw another big drop today, as the overall market moved lower along with a sell-off in tech stocks.

At press time, NIO (NYSE: NIO, HKG: 9866) was down 9.51 percent, hitting a new low since March 15. The stock earlier fell to HK$104.50, a new low since its March 10 listing in Hong Kong.

XPeng Motors (NYSE: XPEV, HKG: 9868) fell 10.48 percent, Li Auto (NASDAQ: LI, HKG: 2015) dropped 6.67 percent and BYD (OTCMKTS: BYDDY, HKG: 1211) fell 6.82 percent.

Hong Kong's Hang Seng Index fell 2.49 percent, while the Hang Seng Tech Index fell 3.95 percent. Alibaba fell 5.09 percent, while Meituan fell 3.76 percent. The Hong Kong stock exchange was closed on Monday because of Buddha's Birthday.

EV stocks plunge in Hong Kong as overall market moves lower-CnEVPost

US stocks plunged overnight, with the Nasdaq Composite Index down 4.29 percent and Tesla down 9.07 percent.

Shares of US-listed Chinese companies also saw heavy sell-off, with the Nasdaq Golden Dragon China Index down 7.79 percent, NIO down 9.18 percent, XPeng down 10.05 percent and Li Auto down 9.66 percent.

It was another sell-off unrelated to the fundamentals of these companies, as investors worry about the prospect of aggressive interest rate hikes by the Federal Reserve.

In company-specific news, NIO officially announced plans for a secondary listing in Singapore on Friday, saying it had received a conditional eligibility-to-list letter from the local exchange.

XPeng announced on Friday that it will make major changes to its model pricing system, with more than half of its models coming with XPILOT driver-assist software as standard starting May 9.

Li Auto will report unaudited first-quarter earnings on Tuesday, May 10, before the US stock market opens.

Phate Zhang/CnEVPost: Phate is the founder and main author of CnEVPost. He has been reporting since 2009, mainly on macroeconomics and capital markets. Contact via: phate@cnevpost.com.
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