Benzinga
CEOs of Nio, Xpeng and Li Auto are bleeding $ 10 billion in EV Market Carnage led by Tesla
The plunge in Tesla Inc (NASDAQ: TSLA) stock has extended to the fortunes of Chinese EV honchos who saw $ 10 billion disappear from their wealth, Bloomberg reported Tuesday. What Happened: Notable among those who have seen a decline in their wealth includes Xpeng Inc (NYSE: XPEV) CEO He Xiaopeng. According to the Bloomberg Billionaires Index, his assets have fallen 858 million since the beginning of January. Xpeng stock is down nearly 37% since its highs in late January. Other Chinese EV stocks that have taken a hit include Nio Inc (NYSE: NIO), which is down 27% from its early January high, and Li Auto Inc (NASDAQ: LI), which has been trading since January 20. 28% is down. Tesla, led by Elon Musk, is down 20% from its all-time high of $ 900.40, which it hit on Jan. 25. “EV stocks have experienced significant growth over a long period of time, making them particularly vulnerable to shifts in sentiment,” said Robert Cowell, an analyst at 86Research, a Shanghai-based private equity firm, Bloomberg said. Cowell also pointed to competition as a factor, saying that “there can be only a few market leaders in the long run”. Why It’s Important: Tesla stocks have fallen due to Tesla’s exposure to Bitcoin (CRYPTO: BTC) and demand concerns, according to Wedbush analyst Daniel Ives. See also: Cathie Wood Terms Tesla Dip ‘Very Healthy, Piles On 240,548 Shares For Ark. . EV fatigue from specialty acquisition companies and increased competition were cited by Deutsche Bank Securities analyst Edison Yu as reasons for the sharp drop. According to Reuters, traditional automakers such as Volkswagen AG (OTC: VWAGY), Hyundai Motor Company (OTC: HYMTF) and Ford Motor Company (NYSE: F) are in the process of launching more affordable EVs. Price Action: On Tuesday, Tesla shares closed 2.19% lower at $ 698.84, Xpev shares closed 0.24% lower at $ 37.91, Li Auto shares closed the day 3.05% lower at $ 26, 99 and Nio 3.10% lower 3.1% at $ 49.11. Click here to check out Benzinga’s EV Hub for the latest electric vehicle news. See more from Benzinga Click here for Benzinga options trading Bitcoin recovers above, 000 powered by 0 million square purchase, Cathie Wood Backing Cathie Wood Terms Tesla Dip ‘Very Healthy’, stacks on 240,548 shares for Ark © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.