EU imposes new tariffs on Chinese EVs, causing BYD, Tesla, and NIO stocks to drop

From Dow Jones & Company: 2024-06-12 11:15:00

Stocks of Tesla, BYD, and NIO dropped after the EU unveiled new tariffs on Chinese electric vehicle imports. Chinese EVs were accused of benefiting from unfair subsidies, leading to taxes of up to 38% on non-cooperative companies. BYD faces a 17% tax, while Tesla’s fate is uncertain. Other countries, like the US and Turkey, are also imposing tariffs on Chinese car imports. China’s enormous car-making capacity and unused potential market pose challenges for global automakers. Despite the tariffs, Citi analyst Jeff Chung believes Chinese EV makers can still be profitable in Europe. As the market for Chinese car exports continues to grow, other nations are taking measures to protect their own industries, prompting concerns among global car manufacturers. Shares of BYD, NIO, Li Auto, and XPeng fell, while Tesla stock rose amidst slower-than-expected inflation readings lifting the market. Companies like BYD, NIO, Li Auto, and XPeng saw declines in their U.S.-listed stocks, while Tesla’s stock experienced a 3.7% increase, outperforming key market indexes.



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