Shares of Nio Inc. have experienced a slight dip due to growing investor concerns over the European Union's investigation into government subsidies that China-based electric vehicle makers receive. Despite a recent rally, with a 5.3% increase over the previous two sessions, the stock (NIO, +2.32%) dropped by 2.3% in premarket trading on Wednesday.

In contrast, Tesla Inc. (TSLA, -2.23%) saw a 1.1% gain ahead of the market opening. Tesla has responded to competitive pressures this year by reducing prices multiple times.

The European Commission President Ursula von der Leyen recently highlighted the flooding of global markets with inexpensive electric vehicles from China due to substantial state subsidies. As a result, the European Commission is initiating an anti-subsidy investigation into imported Chinese electric vehicles.

This investigation has specifically impacted other China-based EV manufacturers. Xpeng Inc. (XPEV, +0.92%) experienced a 3.4% slide, while Li Auto Inc.'s stock (LI, +2.88%) decreased by 2.1%.

Additional companies to keep an eye on following the market opening include BYD Co. (BYDDY, +3.16%, 002594, -0.17%) and Geely Automobile Holdings Ltd. (GELYY, +1.48%, 175, -1.52%). Both of these companies began selling electric vehicles in Europe this year.

As of Tuesday, Nio's stock has seen an impressive 18.9% increase over the past three months, while the Global X Autonomous & Electric Vehicles ETF (DRIV) has declined by 6.3%. Furthermore, the iShares MSCI China ETF (MCHI) has slipped by 3.3%, and the S&P 500 index (SPX) has gained 2.1%.

Sutton Harbour Group Reports Strong Summer Performance

Cracker Barrel Looks to Boost Traffic Amid Sales Miss

Leave A Reply

Your email address will not be published. Required fields are marked *

Related posts

U.S. Stock Markets Open with Promising Pre-Market Trading
News

U.S. Stock Markets Open with Promising Pre-Market Trading

U.S. stock markets open with promising pre-market trading, with First Solar Inc. and Roku Inc. Cl A showing impressive g...

Canadian Parkland Corp. to Sell 157 Convenience Stores
News

Canadian Parkland Corp. to Sell 157 Convenience Stores

Parkland Corp. plans to sell 157 convenience stores across Canada to optimize operations and reduce debt amidst investor...

Indivior Stocks Surge on U.S. Market Expansion Plans
News

Indivior Stocks Surge on U.S. Market Expansion Plans

Indivior's stocks surge as company announces plans for U.S. market expansion, potential primary listing in U.S. Categori...

Burger Chain Wars Heat Up this Halloween
News

Burger Chain Wars Heat Up this Halloween

McDonald's is reintroducing its popular Boo Buckets for Halloween, replacing Happy Meal boxes with plastic trick-or-trea...