Stock of EV makers Nio, Li Auto also tumble after Tesla cuts prices in China

The U.S.-listed shares of XPeng Inc. plunged Friday to snap a five-day win streak, as price cuts by Tesla Inc. in China soured sentiment toward China-based electric vehicle makers.

The stock (XPEV) was down as much as 17.2% at its intraday low of $9.85, before recovering slightly to close down 15.04% at $10.11. It just missed breaking its record one-day drop of 15.08% set on March 24, 2021.

The selloff followed Tesla's (TSLA) disclosure that it had cut prices for its Model 3 and Model Y vehicles in China by more than 10%, the second price cut in three months. It also bucked the rally in the broader stock market, as the S&P 500 surged 2.3%.

XPeng shares, which went public in August 2019, were still up 1.7% to start the year, after soaring 19.7% over the past three days and running up 26.7% amid a five-day win streak.

The stock's rally this week followed the company's report earlier in the week showing that December and fourth-quarter deliveries fell sharply from a year ago, even though Nio Inc. (NIO) and Li Auto Inc. (LI) reported big year-over-year increases.

Tesla's stock swung to a gain of 2.5% to close at $113.06, reversing an earlier intraday loss of as much as 7.7%.

Meanwhile, Tesla's price cuts sent Nio's stock sinking as much as 12.5% intraday Friday before it pared some losses to close down 4.5% at $10.37. After climbing 12.8% the past two days, the stock was still up 6.4% this week, after plummeting 69.2% in 2022.