Chinese EV maker Li Auto falls after it cuts delivery outlook; Beijing extends tax breaks for electric cars

China has extended a tax exemption for new energy vehicles until the end of 2023. China’s electric carmakers have faced a number of headwinds stemming from a resurgence of Covid-19 and Beijing’s continued strict policy of lockdowns to contain the virus. Beijing has on several occasions extended the purchase tax exemption since the policy was first introduced in 2014 in a bid to spur demand. Meanwhile, rival electric car companies Nio and Xpeng jumped as Beijing announced an extension of tax breaks for electric car purchases.

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