Shares of several China-based companies, including Pinduoduo Inc – ADR (NASDAQ:PDD), Nio Inc – ADR (NYSE:NIO), Xpeng Inc – ADR (NYSE:XPEV) and Li Auto Inc (NASDAQ:LI), are trading lower amid ongoing concerns of policy tightening in the wake of positive economic sentiment. Ongoing U.S.-China tensions and regulatory concerns may also be contributing to weakness in Chinese stocks.
Companies in the broader auto and auto components space were also trading lower Tuesday amid sector weakness amid the ongoing semiconductor shortage.
Nio operates in China’s premium electric vehicle market. The company designs and jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence.
Nio is trading lower by 4% at $44.67.
Li Auto is the first to successfully commercialize extended-range electric vehicles in China. It started volume production of its first model, Li ONE, in November 2019.
Li Auto is trading lower by 4% at $28.94.
Xpeng is a smart EV company designing, developing, manufacturing and marketing smart electric vehicles in China.
Xpeng is trading lower by 7% at $40.56.
