Tesla stock sinks toward 2 1/2-year low after China price cuts, dragging Nio, XPeng and Li down with it

Shares of Tesla Inc.
TSLA,
-2.90%
took a dive in premarket trading Friday, after the electric vehicle maker cut prices in China again, which also weighed heavily on rival China-based EV makers. Tesla’s stock fell 5.1% ahead of the open, putting them on track to open at the lowest price seen since August 2020. The selloff comes even as futures
ES00,
+0.02%
for the S&P 500
SPX,
-1.16%
gained 0.1%. Through Thursday, it has already shed 10.4% start 2023, after plunging a yearly record 65.0% in 2022. Tesla generated 24% of its total third-quarter revenue from China, and the company’s Shanghai factory produces more than half of the EVs sold worldwide. Among Tesla’s China-based rivals, shares of Nio Inc.
NIO,
+2.16%
slumped 6.5%, XPeng Inc.
XPEV,
+2.94%
tumbled 10.0% and Li Auto Inc.
LI,
+0.26%
slid 6.9%.