Is the Worst Over for Li Auto Stock as EV Stocks Continue to Fall?

While electric vehicle (EV) stocks were a much sought-after asset class just a couple of years back, it now seems more like a “sunset industry” and less like the promising growth story it once was. Things have been particularly bad for Chinese EV companies, which are battling the double whammy of a slowdown in China and the structural derating of Chinese shares.

Specifically, NIO (NIO) stock is now at its lowest level since 2020, as the company once-hailed as the “Tesla of China” has failed to live up to the market's high expectations. Xpeng (XPEV) has also faltered after a strong 2023, when it announced groundbreaking partnerships with Volkswagen (VWAGY) and China’s ride-hailing leader Didi.