Shares of Chinese electric vehicle maker NIO (NIO-SW) plummeted by 7.48% on Monday, as investors grew increasingly concerned about the potential impact on the company's US expansion plans if former President Donald Trump returns to the White House in 2025.
According to market analysts, Trump's previous tough stance on China and promises to increase tariffs on countries deemed to have hurt US industries could dampen the outlook for Chinese EV manufacturers looking to penetrate the US market.
While Chinese EV companies have been facing challenges in breaking through the US market even under the current Biden administration, a potential Trump presidency could exacerbate these difficulties. Analysts suggest that Chinese EV makers like NIO may need to consider various strategies, such as moving operations to the US to circumvent tariffs, lobbying for exemptions, or diverting to new markets.