- Xpeng (NYSE:XPEV) -5.73%, Li Auto (NASDAQ:LI) -5.25%, Nio (NYSE:NIO) -3.61% and Kandi Technolgies (NASDAQ:KNDI) -2.9% are lower in early trading on news of a government investigation into the sector.
- The National Development and Reform Commission (NDRC) asked local officials to investigate construction and production details of projects related to Evergrande (OTCPK:EGRNF) New Energy Vehicle (NEV) and Shenzhen Baoneng that started from 2017, as per the document seen by Reuters.
- "Looks like China is making an effort to regulate" the EV sector, said Cui Dongshu, secretary-general of the China Passenger Car Association.
- NEVs include battery-powered electric, plug-in petrol-electric hybrid and hydrogen fuel-cell vehicles. China expects sales of NEVs could reach 1.1M vehicles this year.
- Shares of EV manufacturers have rallied in the past one year on the push for clean energy and zero-emissions vehicles with hopes of accelerating the deployment of electric vehicles and public charging outlets. Xpeng and Li Auto got listed in U.S. markets in 2H20.
- Previously: Just a pause? Investors cash out of some EV high-fliers (Nov. 24)