tl;dr
The Biden Administration's plan to protect the U.S. electric vehicle industry is impacting Chinese carmakers, with Li Auto (NASDAQ:LI), NIO Inc (NYSE:NIO), XPeng (NYSE:XPEV), and BYD (BYDDY, BYDDF) all showing a 2-3% decline at midday. According to the Wall Street Journal, Washington will announce a...
The Biden Administration's plan to protect the U.S. electric vehicle industry is impacting Chinese carmakers, with Li Auto (NASDAQ:LI), NIO Inc (NYSE:NIO), XPeng (NYSE:XPEV), and BYD (BYDDY, BYDDF) all showing a 2-3% decline at midday. According to the Wall Street Journal, Washington will announce a four-fold increase in tariffs on EVs imported from China to shield U.S. carmakers from inexpensive Chinese clean-energy products. The decision follows a review of Trump-era "America First" tariffs on Chinese imports, including steel, aluminum, solar panels, and home appliances. Higher tariffs will also be imposed on critical minerals, solar goods, and batteries sourced from China, contributing to weaknesses in U.S. EV makers such as Tesla (TSLA), Rivian (RIVN), and Lucid (LCID). Faced with accelerated manufacturing in China, the Biden Administration is struggling to develop a strategy to discourage U.S. consumers from purchasing cheap clean-energy goods from China. While the existing 25% tariff has kept Chinese EVs out of the U.S. market, the government is concerned that increased Chinese manufacturing will result in an influx of cheaper imports into the U.S. Meanwhile, former President Trump and the presumptive Republican presidential nominee are also targeting China, proposing a 60% tax on all Chinese imports and an amplified 100% tax on EVs. During a campaign stop in Ohio, Trump warned that China's BYD (BYDDY, BYDDF) plan to build a manufacturing plant in Mexico is a way to circumvent U.S. tariffs. Support for restrictive tariffs on Chinese goods appears to be gaining backing from both sides of the political aisle. "I really, really, really, really am going to be intense about my ensuring that automobiles made by China aren't going to get any benefit from trade agreements that we've got," said U.S. Rep Debbie Dingell, a Democrat from Michigan, as quoted by Politico.
More about Li Auto Inc
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Stock: Li Auto Inc
Industry: Manufacturing - Motor Vehicles & Passenger Car Bodies
Market Cap: 123.85B
Current Price: $125.87
PE Ratio: 17.5
EPS: $1.56
Revenue: 47.71B
Net Income: 20.69B
ROE: 1.364 (136.4%)
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More about Nio Inc Class A ADR
Nio Inc Class A ADR Summary
Nio Inc. designs, develops, manufactures, and sells smart electric vehicles in mainland China, Hong Kong, the United States, the United Kingdom, and Germany. The company is headquartered in Shanghai, China.
Sector and Industry
Sector: Manufacturing
Industry: Motor Vehicles & Passenger Car Bodies
Financial Highlights
Market Cap: $11.50B
PE Ratio: N/A
EPS: -1.75
Current Stock Price: $32.71
52-Week Change: -0.38
Revenue: $55.62B
EBITDA: $9.28B
Dividend Yield: 0
Beta: 0.065
More about Xpeng Inc
XPeng Inc Market Analysis XPeng Inc Market Analysis Summary
XPeng Inc. is a company that designs, develops, manufactures, and markets smart electric vehicles in the People's Republic of China. The company is headquartered in Guangzhou, China.
Industry: Manufacturing, Motor Vehicles & Passenger Car Bodies
Market Cap: 7724019000
EPS: -1.67
P/E Ratio: 35.24
PEG Ratio: -0.338
Revenue: 30676066000
Net Income Margin: 14.2%
Debt to Equity: -0.385
Current Ratio: 1.539
More about Tesla Inc
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.
MANUFACTURING, MOTOR VEHICLES & PASSENGER CAR BODIES, 548446700000, 44.09, None, 3.9, 29.8, 0.144, 94745002000, 167.34, -0.534, -0.087
More about Rivian Automotive Inc
Rivian Automotive Inc
Industry: Manufacturing - Motor Vehicles & Passenger Car Bodies
Market Cap: $102.22 billion
EPS: -5.77
P/E Ratio: 5.19
Profit Margin: -1.11%
Revenue: $4.977 billion
Dividend Yield: 15.92%
Beta: 0
Volatility: 0.821
More about Lucid Group Inc
Lucid Group Inc
Industry: Real Estate & Construction
Revenue: $6252377000
Profit Margin: -1.23
Earnings per Share: 0.281
Dividend: $0
Market Cap: $618579000
Price to Earnings Ratio: 3.02
Debt to Equity Ratio: 0
Current Ratio: 0.156
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