Summary: Chinese EV-makers experience sharp decline in stock prices after Tesla reports underwhelming Q3 results
Shares of Chinese electric vehicle (EV) manufacturers took a hit after Tesla failed to meet expectations in its third-quarter earnings report. This marked the first time since Q2 2019 that Tesla missed both earnings and revenue estimates. Hong Kong-listed shares of EV companies BYD and Xpeng dropped by 2.18% and 8.76%, respectively. Li Auto slid 3.14%, while Nio and Geely saw declines of 8.36% and 3.97% in Hong Kong. During the earnings call, Elon Musk warned that the Tesla Cybertruck would not generate significant positive cashflow until 12 to 18 months after production begins. Tesla’s disappointing results also impacted other US-based EV rivals such as Lucid and Rivian, which experienced declines of over 9%. EVP players are facing intense competition and a price war to gain market share, leading to several rounds of price cuts by Tesla and its domestic competitors in China.
Tags: Chinese EV stocks, Tesla earnings, stock market, electric vehicles, competition