China price cuts drag down Tesla stock and rival EV makers

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Shares of Tesla Inc. TSLA, -2.90% took a dive in premarket trading Friday, after the electric vehicle maker cut prices in China again, which also weighed heavily on rival China-based EV makers. Tesla’s stock fell 5.1% ahead of the open, putting them on track to open at the lowest price seen since August 2020. The selloff comes even as futures ES00, +0.01% for the S&P 500 SPX, -1.16% gained 0.1%. Through Thursday, it has already shed 10.4% start 2023, after plunging a yearly record 65.0% in 2022. Tesla generated 24% of its total third-quarter revenue from China, and the company’s Shanghai factory produces more than half of the EVs sold worldwide. Among Tesla’s China-based rivals, shares of Nio Inc. NIO, +2.16% slumped 6.5%, XPeng Inc. XPEV, +2.94% tumbled 10.0% and Li Auto Inc. LI, +0.26% slid 6.9%.

This article was originally published by Marketwatch.com. Read the original article here.

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