The European Union’s scrutiny of Chinese electric-vehicles has grown into a full-blown spat, introducing a fresh catalyst for the EV space and boding ill for EU-China relations more broadly. Tesla, the U.S. darling on the sidelines, could rise above it all.
Chinese EV stocks NIO , XPeng , and BYD fell on Wednesday’s news with NIO and XPeng’s U.S.-listed shares rebounding on Thursday. European auto stocks Volkswagen , Mercedes-Benz , and Stellantis initially rose on Wednesday and then fell on Thursday. And it makes sense. Legacy automakers are at the heart of Europe’s economy, and while Volkswagen is still the overall EV leader in the region, BYD is Europe’s single fastest-growing EV brand in 2023, according to Matthias Schmidt, publisher of the European Electric Car Report. China’s EV groups are growing the fastest in Europe of any national cohort, posing a clear threat to European business interests.