Chinese EV stocks tumble as Beiijng looks to protect its tech: Rpt

Chinese electric vehicle stocks (NIO, LI, XPEV) are under pressure on reports that China is encouraging its car makers to keep advanced EV technology within the country. Market Domination Hosts Julie Hyman and Josh Lipton report more on the story and some of the ways the government is asking carmakers to protect their tech.

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This post was written by Melanie Riehl

Video transcript

All right, let's talk about some other movers here.

We're watching electric vehicles specifically in China.

Chinese EV makers Under some pressure, China is reportedly encouraging its carmakers to keep keep advanced EV tech in the country.

They or they reportedly taking some measures to make sure that that happened here, happens here so effectively.

Many of these Chinese EV makers are building factories around the world, but China reportedly is trying to figure out ways to keep the tech that they're developing largely in China.

Unclear exactly how they're going to do that.

But you've got neo down, Lee is down, and Exon are all under pressure.

Yeah, this is Bloomberg, citing sources, by the way, and and and what they say is China's Ministry of Commerce held a meeting in July with more than a dozen automakers who are also told they should make any auto related investments in India.

Uh, carmakers want to invest in Turkey, should first notify the government.

And of course, it's all coming, as as these companies are are looking to expand internationally, right?

You know, I mean, they want to tap in and leverage new markets, and new customers find new areas of business, especially as they know their home market is such red hot competition.

Yeah, and and where these rules might particularly come into conflict with where they're trying to expand is as as Bloomberg report.

As you pointed out, um, and E and European Commission official recently said, You know, if these companies wanna operate here, there maybe has to be a minimum level of what's going into the cars that is produced locally.

So is that then going to present an an issue for their growth if they're also under pressure from China?

The shares of all three of these companies, by the way, are down more than 40% year to date.