Will tariffs in Europe make Chinese EV firms cry?
$NIO Inc.(NIO)$ $NIO-SW(09866)$ drops 3.2% following the EU’s decision to impose tariffs on Chinese EVs. Now trading at an 8% discount to the HK traded shares.
Makes little sense as Europe accounts for a small portion of Nio’s business. The China EV market is where the action is at today and where $NIO Inc.(NIO)$ $NIO-SW(09866)$ $Li Auto(LI)$ $LI AUTO-W(02015)$ $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ will learn to thrive or fail in the most competitive market in the world.
You think tariffs in Europe will make Chinese EV firms cry? Ask European, Japanese and American automakers how tough it is to survive in China. The real losers here are the consumers.
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Nio, Inc. $NIO now in positive territory less than 5 mins before the close of trading in HKEXGroup despite news that the EU is now voting on 45% tariffs on Chinese EV imports. Perhaps confident that Germany would vote against it (China is one of their largest markets) and Sweden is abstaining (Volvo owned by Chinese carmaker $GEELY AUTO(00175)$ ).
Short volume just tells us many people were shorting and could have covered within the day. But yes, short volume has picked up vs. past few days.
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Interesting how 6 out of 8 of the top selling European car brands voted against or abstained from voting on the EU tariffs against China EVs. But the decision was still to slap tariffs on China. You can tell which brands just don’t have an EV strategy at all.
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https://twitter.com/BrianTycangco/status/1842113196284641503
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