Why Chinese EV stocks are crashing

After enjoying strong rallies in the final week of February, two prominent Chinese electric vehicle (EV) makers experienced sharp and unexpected stock market drops on March 3.Specifically, both Nio (NYSE: NIO) and Li Auto (NASDAQ: LI) surged 12.18% at the end of last month from $4.27 on February 25 to$4.79 on February 27 and 24.89% from $26.36 on February 24 to$32.92 on February 26, only to collapse 4.32% and 9.73% on Monday morning.NIO and LI stock 24-hour price charts. Source: GoogleLooking at the lates ...