Here's why Nio, XPeng, Li Auto stocks are crashing

Group 1 - The European Commission announced additional duties of up to 38.1% on imported Chinese electric vehicles, effective July 4, which is expected to lead to potential retaliation from China [1] - The U.S. has increased tariffs on Chinese imports, including electric vehicles, with plans to quadruple tariffs on EVs to over 100% and double tariffs on semiconductors to 50% [2] - Chinese EV stocks, including Nio, XPeng, and Li Auto, experienced significant declines in pre-market trading following the news of increased tariffs, reflecting broader losses since the beginning of the year [3] Group 2 - The upcoming tariffs are anticipated to negatively impact stock prices, delivery, and production numbers as accessing and supplying products to European and American markets becomes more expensive [4]