Shares of Chinese electric vehicle startups XPeng Inc. XPEV, Nio Inc. NIO and Li Auto Inc. LI were declining sharply in premarket trading on Friday.
What Happened: Much of the weakness could be traced back to EV pioneer Tesla Inc.’s TSLA decision to lower its Made-In-China vehicle prices in reaction to softness in demand and competitive pressure.
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Tesla’s lowest price point in China is now under $34,000. Given Tesla’s share in the Chinese market, the price cuts could stimulate demand for its vehicles, potentially impacting sales of its competitors.
Price Action: According to Benzinga Pro data, Nio slid 6.45% to $10.16 in premarket trading on Friday. XPeng plunged 10.08% to $10.70 and Li Auto declined 6.90% to $21.45.