- NASDAQ:GGPI fell by 1.08% during Thursday’s trading session.
- China releases its February vehicle sales figures.
- Tesla tanks after receiving a cautionary note from Piper Sandler.
NASDAQ:GGPI failed to continue its recent hot streak as the electric vehicle sector tumbled on Thursday following a sizzling hot session on Wednesday. Shares of GGPI dropped by 1.08% and closed the trading day at $10.98. It was a stark contrast from Wednesday’s session where every stock on the market seemed to be bouncing higher. On Thursday, Tesla (NASDAQ:TSLA) retraced lower as the industry leader fell by 2.41%, while Lucid fell by 4.16%, and Chinese EV maker Nio (NYSE:NIO) tumbled by 11.9% during the session. Earlier in the day, Nio debuted on the Hong Kong Stock Exchange where it closed the day flat.
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Earlier this week, China released its February vehicle deliveries from the Chinese Passenger Car Association. Not surprisingly, Warren Buffett-backed BYD led the way once again with Tesla coming in second place. Polestar’s parent company, Geely, sold 14,501 NEVs in February, good for a 471% year over year improvement. The list only highlighted the gap that is developing in China between BYD, Tesla, and the rest of the pack. It is likely a major reason why EV makers like Nio, XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI), and of course, Polestar, were all trading well below water on Thursday.
Gores Guggenheim stock price
Interestingly enough, Tesla’s dominance in China has led to a somewhat bearish note from analysts at Piper Sandler. The investment firm has been bullish on Tesla in the past, but on Thursday analysts noted that Tesla’s growing reliance on the Chinese market could put the stock price in jeopardy if the Chinese government were to ever step in and act to reduce Tesla’s presence in the country. Given the unpredictability we have seen from the CCP, Piper Sandler is warning investors that there is a lingering threat that Tesla could one day lose a major part of its business.
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