Why Tesla Dropped While Nio and Li Auto Shares Jumped Early Today
Tesla (NASDAQ: TSLA) has put much time and focus into expanding production capacity at its plant in Shanghai, China. There are indications that those efforts will pay off, but the stock is getting hit Thursday after a large unrelated recall from the EV leader. Tesla shares fell by more than 4% in morning trading, and were still down by 3.1% as of noon ET.
Meanwhile, shares of Chinese EV makers Nio (NYSE: NIO) and Li Auto (NASDAQ: LI) went in the other direction after a sign that EV demand remains strong in China. Nio was up nearly 5% and Li Auto 10% at their respective highs of the day. As of noon ET, Li was still up 7.3%, but Nio had relinquished its gains.
Tesla is recalling 1.1 million of its electric vehicles due to concerns about the way their fully automatic windows react when they detect obstructions while closing. The key concern is that those closing windows "may exert more force" than they are supposed to before reversing automatically, which could pinch drivers or riders. The recalls include Model 3 vehicles made since 2017, as well as multiple model years for the Model Y, Model S, and Model X, according to The Wall Street Journal.
Source Fool.com
