Chinese EV Shares Decline Following Tesla's Earnings Shortfall and GM's Project Delay

Shares of major Chinese electric vehicle (EV) manufacturers experienced significant declines on Wednesday, following disappointing earnings from Tesla and a delay in General Motors' EV plans. Xpeng's Hong Kong-listed shares fell by as much as 5.74%, while Nio's stock dropped 5.26%. Other notable declines included Li Auto, which saw a 3.99% decrease, and BYD, Zhejiang Leapmotor, and SAIC Motor, which fell by 3.1%, 5.34%, and 1.02%, respectively. In the U.S. market, Xpeng and Nio also closed lower, with declines of 6.67% and 4.48%. The downturn in EV stocks reflects a broader trend of waning enthusiasm in the electric vehicle sector, as major automakers like Tesla and General Motors reassess their production and rollout strategies. Tesla reported a second consecutive quarterly revenue decline, with earnings falling 7% to $19.9 billion, down from $21.27 billion a year earlier. Following the earnings report, Tesla shares closed down 2.04%. During the earnings call, CEO Elon Musk announced a new date for the unveiling of Tesla's robotaxi, now scheduled for October 10, after a previous postponement. Musk expressed cautious optimism about the timeline for the first robotaxi ride, admitting that his past predictions have often been overly ambitious. In a related development, General Motors announced further delays in the establishment of a second U.S. electric truck plant and the launch of its Buick brand's first electric vehicle, contributing to the overall uncertainty in the EV market.