What's going on with Chinese EV stocks NIO, XPeng, Zeekr on Friday? – XPeng (NYSE:XPEV), NIO (NYSE:NIO), Li Auto (NASDAQ:LI)

Chinese stocks of electric vehicles NIO Inc NOK, XPeng Inc XPEV, ZEEKR Intelligent Technology Holding ZKAnd Li Auto Inc LI On Friday, the US continued its upward trend in stock prices after China announced plans to cut its key interest rates to boost discretionary spending.

On Tuesday, China's central bank announced plans to cut banks' reserve requirement ratio (RRR) by 50 basis points, or half a percentage point. The central bank also plans to cut the seven-day reverse repurchase rate from 1.7% to 1.5%.

Chinese electric vehicle stocks have fallen 27-35% as the industry struggles with weak domestic demand, leading to a price war. Protectionist tariffs from the EU and the USA are creating additional headwinds.

The sector also bore the brunt of US semiconductor sanctions against China, as artificial intelligence technology plays a crucial role in the automotive sector.

Reuters quoted China's Ministry of Commerce as saying that China has launched an anti-discrimination investigation into Canada's additional tariffs on Chinese electric vehicles and more.

The Chinese electric vehicle sector also received a boost from the Chinese hyperscalar Alibaba Group Holdings BABA Partnership with Nvidia Corp NVDA to improve the autonomous driving experience for Chinese owners of smart vehicles such as Li Auto and more.

Alibaba's Apsara conference showcased the e-commerce giant's AI achievements, including Alibaba Cloud's collaboration with XPeng to improve the smart cockpit experience.

NIO stock prediction for 2024

NIO's revenue growth in FY23 was 7.3%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services and its position relative to competitors. This growth is a crucial indicator for investors assessing the company's future prospects.

Macroeconomic factors that could impact the company's performance next year include higher interest rates, progress in fighting inflation and the strength of the labor market. The Fed's key interest rate is currently at 4.83%, while the PPI was recently at 0.2%, up 1.7% from a year ago. The unemployment rate was most recently reported at 4.2%.

An investor should pay attention to economic conditions to decide whether they believe the macroeconomic environment is positive or negative for NIO stock. For real-time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this compare to NIO's competitors?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. NIO operates in the consumer discretionary sector. The stock posted average annual growth of -45.16%, compared to the -34.99% average for peer companies. This is below NIO's broader sector movement.

Price promotions: NIO shares were up 4.15% at $6.02 in premarket trading on Friday at last check. XPEV shares are up 4.20% at $12.16, ZK shares are up 2.07% at $18.70 and LI shares are up 0.04% at 25 .38 US dollars increased.

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