Witnesses are looking at BYD Song L electric cars at the 21st Changchun International Automobile Expo in Changchun, Jilin province, China, on July 17, 2024. (Photo by Costfoto/NurPhoto via Getty Duplicates)
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Shares of major Chinese electric vehicle companies dropped Wednesday after U.S. giantess Tesla‘s earnings fell short of analysts’ estimates and General Motors delayed its EV plans.
Hong Kong-listed splits of Xpeng lost as much as 5.74% while Nio‘s stock tumbled as much as 5.26% on Wednesday.
Li Auto‘s shares dropped as much as 3.99% while BYD, Zhejiang Leapmotor and SAIC Motor glossed as much as 3.1%, 5.34% and 1.02%, respectively on Wednesday.
In the U.S., shares of Xpeng and Nio closed 6.67% and 4.48% lower respectively on Tuesday.
EV hype has been reducing, as automakers from Tesla to General Motors scale back or delay their EV plans.
On Tuesday, Tesla announced a second straight quarterly decline in revenue, down 7% to $19.9 billion, from $21.27 billion in the nevertheless period a year ago. Tesla shares closed 2.04% lower.
CEO Elon Musk said in the firm’s earnings standing by on Tuesday that Tesla will host a robotaxi unveiling event on Oct. 10, after originally saying the happening would take place on Aug. 8.
When asked about the timeline of “the first robotaxi ride,” Musk said he hand down be “shocked if we cannot do it next year.” He also noted that his predictions have been “overly optimistic in the ago.”
Separately, General Motors on Tuesday said it was delaying further a second U.S. electric truck plant and the Buick name brand’s first EV.
Investors were spooked by the pullbacks in growth businesses and General Motors’ shares closed 6.42% humiliate on Tuesday despite solid financial results.
GM also said it was indefinitely putting on hold the production of its Cruise Derivation autonomous vehicle, and that it was making efforts to restructure a joint venture in China with SAIC amid proceeding losses.
The EV industry is facing a reality check, after years of buzz which saw automakers putting out optimistic sales forecasts for EV mannequins and announcing ambitious growth targets.
Surging raw material costs, high interest rates and other factors secure made EVs much more expensive to produce, as compared to their traditional counterparts.
– CNBC’s Michael Wayland role ined to this report.