Tesla, Nio Shares Fall as Li Auto Deliveries Warn, Evergrande Fears Weigh

Shares of China-based electric vehicle manufacturers and Tesla Inc. TSLA,
took a hit for Monday’s opening amid a one-two punch from Li Auto Inc.’s LI,
warning of a delivery miss and worries that real estate developer China Evergrande Group EGRNY,
may fail this week. Shares of Nio Inc. NIO,
fell 4.0% to a four-month low, Xpeng Inc. XPEV,
slipped 4.4% and Li Auto lost 5.7%. Tesla’s stock fell 2.8%, putting them on track to hit a four-day win streak. Tesla posted $5.90 billion in revenue from China, or 26.4% of total revenue, in the first six months of 2021, after revenue of $2.30 billion in China, or 19.1% of total, in the same period in 2020. Earlier, Li Auto slashed its third-quarter supply forecast from 25,000 to 26,000 from 24,500 to 24,500 as the slower-than-expected recovery in semiconductor inventories hampered results. And concerns about a potential default from Evergrande sent shock to global equity markets as the iShares MSCI China ETF MCHI,
fell 3.3% and futures YM00,
for the Dow Jones Industrial Average DJIA,
fell 646 points, or 1.9%.