Why NIO, XPeng, and Li Auto Stocks Are Down Today

John Rosevear, The Motley Fool
·2-min read
Why NIO, XPeng, and Li Auto Stocks Are Down Today

Shares of several up-and-coming Chinese electric-vehicle makers were trading lower on Monday, after a prominent short-seller accused another Chinese electric-vehicle company, Kandi Technologies (NASDAQ: KNDI), of recording revenue it hadn't earned. Li Auto (NASDAQ: LI) was down about 7%. Simply put, Hindenburg alleged that Kandi greatly exaggerated its sales over the last year by recording revenue from "sales" that were actually transfers to affiliated companies.