Audiences view the BYD Song L electric vehicle at the 21st Changchun International Automobile Expo in Changchun, Jilin Province, China, on July 17, 2024.
Noor Photos | Noor Photos | Getty Images
Shares of major Chinese electric car companies fell on Wednesday after U.S. giants TeslaProfit fell short of analysts’ expectations General Motors Delayed its plans for electric vehicles.
Hong Kong listed stocks Xpeng Motors The drop was as high as 5.74% NiohOn Wednesday, the company’s shares plunged 5.26%.
ideal carThe stock price fell 3.99% BYD, Zhejiang Lingpao and SAIC Motor They fell 3.1%, 5.34% and 1.02% respectively on Wednesday.
In the United States, the shares of Xpeng Motors and NIO closed down 6.67% and 4.48% respectively on Tuesday.
Electric vehicle hype has been waning as automakers from Tesla to General Motors scale back or delay their electric vehicle plans.
On Tuesday, Tesla reported a second consecutive quarterly decline in revenue, falling 7% to $19.9 billion from $21.27 billion in the same period last year. Tesla shares closed down 2.04%.
Tesla initially said the event would be held on August 8, but the company will hold the robotaxi unveiling on October 10, Chief Executive Elon Musk said during the company’s earnings call on Tuesday.
When asked about the timetable for “the first robot taxi ride”, Musk said that “if we can’t do it next year, he will be shocked.” He also noted that his forecasts “were overly optimistic in the past.”
Separately, General Motors said on Tuesday it would further delay construction of its second U.S. electric truck factory and the Buick brand’s first electric vehicle.
Investors were stunned by the pullback in the growth business, with GM shares closing down 6.42% on Tuesday despite a solid financial performance.
General Motors also said it would suspend production of its Cruise Origin self-driving cars indefinitely and was working to restructure its joint venture with SAIC Motor in China amid continued losses.
After years of heated debate, the electric vehicle industry is facing a reality check as automakers make optimistic sales forecasts for electric vehicle models and announce ambitious growth targets.
Soaring raw material costs, high interest rates and other factors make electric vehicles much more expensive to produce than traditional electric vehicles.
–CNBC’s Michael Weiland contributed to this report.
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