Written by Cláudio Afonso | LinkedIn | X
The U.S.-listed stocks from Chinese electric vehicle (EV) manufacturers registered sharp declines on Tuesday following the adjustment from the European Commission on the incremental tariffs for imported EVs.
If Tesla saw its tariff being dropped from 20.8% to 9% following an extra review asked by the company’s CEO Elon Musk, cooperating companies that include Nio and XPeng saw their tariffs increasing from 20% to 21.3%.
SAIC Group, which owns MG among other brands, saw the European Commission narrowly reducing its tariff from 38.1% to 36.3%.
Nio shares closed 5.28% lower at $3.855 on Tuesday while XPeng dropped nearly 6% to $6.77 on the same day it reported the second quarter earnings results.
Zeekr, a brand under the Geely Holding Group, saw its shares plummeting over 8% to $15.23 despite the slight reduction on the tariff for the Geely brands from 20% to 19.3%.
Shares from Polestar, the Sweden-headquartered company also from the Geely Group, traded flat closing the day less than 1% higher.
In a new research note, Barclays analyst Dan Levy said on Tuesday that the decision is in line with the firm’s expectation for Tesla. The firm has an Equal Weight rating and a $220 price target on the stock.
China has recently opposed to the EU’s measures, naming them protectionist while threatening retaliation across several industries.
Following the revised measures, BYD will pay a tariff of 17 percent while Geely also saw a slight adjustment of their tariff from 20% to 19.3%.
Written by Cláudio Afonso | LinkedIn | X
