China’s Electric Car Upstarts Face a Crucial Earnings Season

(Bloomberg) ― The gloss is coming off China’s three U.S.-traded electric-car makers.

Shares have plunged this year for Xpeng Inc., down 86%; Nio Inc., 69%’; and Li Auto Inc., 56%, destroying a combined $77 billion in market value.

While some factors have been out of the automakers’ control — such as fears Chinese companies could be delisted from U.S. exchanges, and investor concern over Chinese President Xi Jinping’s consolidation of power — there’s no denying that shareholders are looking for hard evidence the trio are on track to turn profitable after years of losses.