Stocks of Nio and BYD fall after Europe's new tariff plans

By Tomi Kilgore

Nio doesn't sell EVs to the EU, but BYD does

Shares of Nio Inc. and BYD Co. Ltd. fell Wednesday, following news that the European Commission plans to impose new tariffs on EVs from China of up to 38%.

Europe's new tariffs come only about a month after the U.S. quadrupled its tariffs on China EVs to 100%.

Nio's stock (NIO) dropped 1.6% in premarket trading, putting it on track to open at a seven-week low.

Shanghai-based Nio doesn't currently sell any EVs to Europe or the U.S., and some analysts have said Nio shouldn't be impacted. But since just before the U.S. tariffs were announced, Nio's stock has tumbled 19%, including Wednesday's premarket selloff.

The European Commission's new tariff plans come after an investigation found that China's subsidies to its EV makers were hurting those in the European Union, as Dow Jones Newswires reported.

The U.S.-listed shares of BYD (BYDDY) (CN:002594), which does generate some revenue from Europe, slumped 3.5%.

Shenzhen-based BYD's sales to Germany have increased about 22% over the past 12 months, representing roughly 1.3% of total revenue, according to proprietary data provided by FactSet.

The company also generated about 1% of its revenue from the United Kingdom, the FactSet data showed.

Read more about recent monthly deliveries data from Nio, BYD and others.

Elsewhere, shares of Beijing-based Li Auto Inc. (LI) fell 1.1%, but Guangzhou-based Xpeng Inc.'s stock (XPEV) gained 0.9%.

Shares of Texas-based Tesla Inc. (TSLA), which generated 21.6% of its total first-quarter revenue from China, tacked on 0.8%.

-Tomi Kilgore

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06-12-24 0907ET

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