The US-listed shares of XPeng Inc. plunged Friday, due to a price cut by Tesla Inc. in China has weakened sentiment towards China-based electric vehicle manufacturers.
fell as much as 17.2% at an intraday low of $9.85, before recovering slightly to drop 14.5% in midday trading. It is still in range of breaking the 15.1% record drop on March 24, 2021.
The sell-off comes after Tesla revealed that it had slashed prices by more than 10% on Model 3 and Model Y vehicles in China. second sale in three months. It also supports the broader stock market rally, like the S&P 500 .
XPeng stock, which went public in August 2019, is still up 2.4% year-to-date, after gaining 19.7% over the past three days and gaining 26.7% in a five-day streak of gains.
and Li Auto Inc.
reported large annual increases.
rose 0.5% in midday trading, reverse a loss in the previous day up to 7.7%.
Meanwhile, Tesla’s price drop sent Nio shares down as much as 12.5% on Friday before it pared some of its losses to 7.1% in midday trading. After gaining 12.8% in the past two days, the stock is still up 3.4% this week, after a sharp 69.2% drop in 2022.
Shares of Li Auto fell 9.3% but had previously fallen as much as 14%. Shares were up 25% amid a five-day bullish streak through Thursday.