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    Electric Last Mile shares plummet to $1 after company confirms SEC probe

    Shares of Electric Last Mile Solutions plummeted during trading Monday to less than $1 a share following the company confirming a probe by the Securities and Exchange Commission.
    The investigation is the latest problem for the Michigan-based company following unexpected resignations last month of both the company’s chairperson and CEO.
    ELMS said it was withdrawing previous guidance and would need to raise cash to get vehicles to market.

    The ELMS Urban Delivery, anticipated to launch later this year, is expected to be the first Class 1 commercial electric vehicle available in the U.S. market and will be produced at the Company’s facility in Mishawaka, Indiana.
    Electric Last Mile Solutions

    DETROIT – Shares of EV start-up Electric Last Mile Solutions plummeted during trading Monday to less than $1 a share after the company confirmed a probe by the Securities and Exchange Commission into its operations.
    The late-Friday disclosure is the latest problem for the Troy, Michigan-based company following unexpected resignations last month of both the company’s chairperson and CEO. The departures were connected to ELMS’ determination that the executives lied during an internal investigation into share purchases ahead of the company going public through a special purpose acquisition company, or SPAC.

    ELMS said it learned of the investigation by the SEC on March 7, according to the regulatory filing Friday. The company also said it was withdrawing previous guidance and would need to raise cash to its vehicles to market.
    Shares of ELMS were down by as much as 53% during intraday trading Monday before closing at 99 cents a share, down 48% for the day. The company’s stock has declined 86% in 2022.
    The company said it has sufficient cash to continue operations through between July and September 2022.

    ELMS is among an influx of new EV start-ups to have gone public through a SPAC deal within the past two years. Following initial pops in share prices, most of the companies have been plagued by federal investigations, scandals and executive upheaval.
    Nikola Corp., Lordstown Motors and Lucid Group are among such companies to have disclosed SEC inquiries. Nikola late last year agreed to pay the SEC $125 million to settle charges it defrauded investors by misleading them about its products, technical capacity and business prospects.

    ELMS made headlines last year when it went public in June, as it prepared to begin producing electric commercial vans at a former General Motors plant in Indiana that last produced gas-guzzling Hummer SUVs in the mid-2000s.
    The company is fully cooperating with the SEC investigation, according to the filing. ELMS said it “cannot predict the eventual scope, duration or outcome” of the investigation.

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    Stocks making the biggest moves midday: Alibaba, Apple, Robinhood and more

    Signage for Alibaba Group Holding Ltd. covers the front facade of the New York Stock Exchange November 11, 2015.
    Brendan McDermid | Reuters

    Check out the companies making headlines in midday trading.
    Alibaba, Baidu, JD.com — Shares of the China-based companies fell after JPMorgan Chase downgraded the stocks to underweight. Their stocks tumbled more than 10%, 8% and 10%, respectively, amid a new shutdown in Shenzhen and renewed U.S. delisting fears.

    Apple — The company’s stock fell 2.7% as one of the its biggest suppliers in China said it would pause operations in Shenzhen amid a new Covid-19 lockdown. KeyBanc also reiterated its outperform rating on shares of the technology giants and said that iPhone demand remains strong.
    Occidental Petroleum, Chevron – The energy companies fell 4% and 2.5% after analysts at Morgan Stanley downgraded the stocks to equal-weight from overweight. The bank noted that while both companies have outperformed peers in recent months, they currently offer less attractive relative valuations. Oil prices also moved lower Monday.
    Ford — Shares of the auto company dipped about 2% after Jefferies reiterated its hold rating and lowered its price target. The Wall Street firm slashed its price projection on Ford shares to $18 from $20, citing worries about “a stagflationary environment of higher input costs and continued supply constraints.”
    Tyson Foods — The poultry company’s stock fell 2.4% after BMO Capital markets downgraded the it to market perform from outperform. BMO said it’s concerned about “underlying fundamentals” in beef.
    Nike — Shares for the sports apparel giant tumbled 4%, furthering losses this year as geopolitical risks continue to weigh on the retailer. On Monday, UBS reiterated a buy rating for Nike, but analysts noted that its business in China is not recovering as fast as the firm expected. Last year, Chinese consumers boycotted the American company, after several companies in the West refused to source cotton from the Xinjiang province, calling out forced labor issues

    Peloton — The at-home fitness stock lost more than 4% after Morgan Stanley initiated coverage of it with an equal weight rating, saying it lacks near-term visibility for Peloton. Still, it said it leans bullish as its price target of $32 implies about 50% upside.
    Papa John’s — Shares rose more than 2% after Loop Capital reiterated its buy rating on the pizza chain. The firm said Papa John’s comparable store sales accelerated and could “improve even further soon.”
    Robinhood — Shares fell 3% after Goldman Sachs reiterated its neutral buy rating, citing market concerns about the company’s “ability to grow the business and scale into profitability.” The company could be poised for re-rating if it can “translate its new product momentum into a return to revenue and user growth,” the analysts wrote.
    Netflix — The streaming giant’s stock fell nearly 3%, reaching its lowest level since March 2020. Netflix shares have struggled recently amid rising competition from other media companies.
    — CNBC’s Tanaya Macheel, Yun Li, Hannah Miao and Sarah Min contributed reporting

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    One-third of job switchers took a pay cut for better work-life balance. How to prepare to live on a lower salary

    Ricardo Mojana | Getty Images

    As the Great Resignation continues, employees are rethinking salaries, work-life balance and flexibility in their new careers.
    Some are willing to take a pay cut in exchange for a better schedule.

    One-third of workers who switched jobs during the pandemic took less pay in exchange for better work-life balance, according to a survey by Prudential. And about 20% of workers said they would take a 10% pay cut if it meant they could work for themselves or have better hours.
    Many workers also want job security and would trade higher pay to work for a company long-term. The survey found that 56% said they had or would consider prioritizing stability over a bigger salary.
    More from Invest in You:How a three-month paid sabbatical can help with employee retentionHow this small business founder pivoted her strategy during the pandemicFive things every entrepreneur should do when starting a company
    That could also lead to less paid overtime. To be sure, many people who switched jobs have seen increases in take-home pay. A survey from The Conference Board found that about one-third of workers who left jobs during the pandemic are making 30% more in their new roles. However, about 27% who switched jobs said pay was the same or less in their new job.
    Things to consider
    Of course, taking a pay cut will directly affect your finances and may not be advisable right away, according to Tania Brown, an Atlanta-based certified financial planner and founder of FinanciallyConfidentMom.com.

    If you’re weighing a job where you will make less money, there are a few things you need to consider beforehand, she said.
    First, ask yourself why you want to leave your current job, she said. Are you burned out? Will a different job or career be more fulfilling? Are you planning to move?
    Contemplating the answers to these questions will help ensure you don’t make a rash decision you’ll later regret, said Brown.

    “Emotions have no logic, and you’re trying to make a math decision based on emotion,” Brown said. “It’s just not going to turn out.”
    Additionally, if you’re only a few months away from paying off debts or hitting a similar financial goal, you may want to hold off.
    Plus, you may realize you don’t want to leave your job, but instead would like more flexibility or a change in your role. If that is the case, now is a great time to ask for a different schedule, to take on different responsibilities or to try to introduce other flexibilities into your job, said Anita Samojednik, CEO of Paro, which provides accounting and finance solutions for businesses, focused on workers who do so-called mental tasks for a living — such as programmers, pharmacists and lawyers.
    She said she’s seen many people dip their toes into freelancing in addition to a full-time job to test the waters of a new gig or becoming their own boss.
    The math

    If you discover that switching jobs is truly what you want, then you have some math to do, Brown said.
    That includes a deep dive into your current budget to see if you can achieve your objectives on a smaller income.
    Brown suggests a trial period of a few months where you try to see if you can meet your goals on smaller take-home pay. That test run could help you decide if a pay cut is right for you.
    You should also think about how making less will affect your long-term goals, Brown said. If you’re saving up for a house or plan on having a baby, how will your new income change the timelines on those milestones? If it will take longer, is it worth it for you to wait?
    If you’re part of a family, you should also consult the other members in your household before making your move. That means talking with your spouse and children about what changes would take place, such as fewer trips or less money for extra activities — and deciding if it works for everyone.
    “This has to be a family decision because your decision is impacting everyone in the household,” said Brown.
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    U.S. oil tumbles more than 8%, dips below $100 per barrel

    U.S. oil tumbled on Monday, breaking below $100 per barrel, amid talks between Russia and Ukraine as well as new Covid-19 lockdowns in China.
    West Texas Intermediate crude futures, the U.S. oil benchmark, lost 8.75% to trade at $99.76 per barrel.
    Even with the big decline both Brent crude, the international benchmark, and WTI are still up more than 30% for the year.

    U.S. oil tumbled more than 8% on Monday, breaking below $100 per barrel, amid talks between Russia and Ukraine as well as new Covid-19 lockdowns in China — which could dent demand.
    West Texas Intermediate crude futures, the U.S. oil benchmark, lost 8.75% to trade at $99.76 per barrel at the lows of the day. International benchmark Brent crude shed 8% to $103.68 per barrel.

    In afternoon trading some of the losses were recovered. WTI settled 5.78% lower at $103.01 per barrel, with Brent finishing the day at $106.90 per barrel, for a loss of 5.1%.

    Workers extract oil from oil wells in the Permian Basin in Midland, Texas.
    Benjamin Lowy | Getty Images

    Rebecca Babin, senior energy trader at CIBC Private Wealth U.S., attributed the declines to a mix of geopolitical and demand factors. Russia and Ukraine were slated to resume peace talks on Monday, while China’s March demand is set to be revised lower due to new coronavirus lockdowns. Additionally, open interest in Brent futures has dropped, which means financial players are reducing risk.
    “Today’s action reflects a shift in sentiment in Russia/Ukraine causing sentiment traders to sell, fundamental concerns around demand coming from China’s Covid lockdowns causing fundamental traders to take profits, and technical pressure as crude breaks” key levels, said Babin.
    Monday’s sell-off builds on last week’s decline, which saw WTI and Brent register their worst week since November.
    Oil surged above $100 in late February as Russia invaded Ukraine, prompting fears that supply would be disrupted in what was already a tight market. It was the first time oil breached the triple-digit level since 2014.

    And the climb didn’t stop there. WTI traded as high as $130.50 last week, with Brent almost reaching $140.
    The market has been whipsawing between gains and losses in what’s been an especially volatile time for oil prices. The surge has sent the national average for a gallon of gas in the U.S. to the highest on record, unadjusted for inflation, which is adding to inflationary fears across the economy.
    Even with Monday’s big decline both Brent and WTI are still up more than 30% for the year.
    “We have a demand scare for the first time in a while,” said John Kilduff, partner at Again Capital. “The Covid lockdown in China has spooked the market,” he added, noting that high fuel prices around the world is also causing demand destruction.

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    Two years into the coronavirus pandemic, Fauci hopes the world will not forget lessons from a 'catastrophic experience'

    While much of the U.S. and the world have moved past Covid-19, experts warned not to get complacent about preparing for the next phase of the crisis.
    Two years after the WHO declared the coronavirus a pandemic, more than 1,200 Americans per day are still dying from Covid.
    New funding to fight the virus has stalled in Congress, but work continues on treatments, vaccines and surveillance.

    Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, arrives for a Senate Health, Education, Labor and Pensions Committee hearing to discuss the on-going federal response to COVID-19, at the U.S. Capitol in Washington, D.C., May 11, 2021.
    Greg Nash | Pool | Reuters

    As the two-year anniversary of the coronavirus pandemic declaration approached last week, White House chief medical advisor Dr. Anthony Fauci was in no mood to predict the future.
    “The answer is: We don’t know. I mean, that’s it,” Fauci told CNBC when asked what may come next for Covid-19 vaccinations. Given the durability of protection from the shots, “it is likely that we’re not done with this when it comes to vaccines,” he said.

    Two years into a pandemic that has killed more than 6 million people globally, and nearly 1 million in the U.S., leaders in public health, academia and industry expressed ambivalence as much of the rest of the world — or at least the U.S. — appears to be trying to move on. Despite progress in beating back the highly transmissible omicron variant, they stressed that globe leaders cannot let their vigilance lapse.
    “Everybody wants to return to normal, everybody wants to put the virus behind us in the rearview mirror, which is, I think, what we should aspire to,” said Fauci, who is also the director of the National Institute of Allergy and Infectious Diseases.
    While he acknowledged “we are going in the right direction” as cases, hospitalizations and deaths decline after the omicron surge, he pointed out “we have gone in the right direction in four other variants” before the pandemic took a devastating turn.
    As states and cities scrap many of their pandemic restrictions, dire public health conditions linger. The U.S. is still recording more than 1,200 deaths per day from the coronavirus. Hospitalizations have recently ticked higher in the United Kingdom, a previous harbinger for what may hit the U.S.
    As the world on Friday marked two years since the World Health Organization first called the coronavirus a pandemic, the agency’s scientists argued last week that the more important anniversary came more than a month earlier. In January 2020, the WHO warned that the disease that would come to be known as Covid-19 was a Public Health Emergency of International Concern.

    Everybody wants to return to normal, everybody wants to put the virus behind us in the rearview mirror, which is, I think, what we should aspire to… We have been going in the right direction; however, we have gone in the right direction in four other variants.

    Dr. Anthony Fauci
    Director, National Institute of Allergy and Infectious Diseases

    “What we were saying in January was: ‘It’s coming, it’s real, get ready,'” said Dr. Mike Ryan, executive director of WHO’s health emergencies program, in a briefing Thursday. “What I was most stunned by was the lack of response, was the lack of urgency, in relation to WHO’s highest level of alert.”
    That lower level of urgency appears to have settled in once again. Congress last week sidelined new funding for the Covid response despite White House press secretary Jen Psaki’s warning that the U.S. needs funds to secure critical supplies.
    She said that without more aid, the U.S. risks dropping testing capacity within weeks, running out of monoclonal antibody drugs by May — exhausting the only medicine to preventively protect the immunocompromised by July — and going through antiviral pills by September.
    “I am concerned,” Pfizer Chief Executive Albert Bourla said on CNBC’s “Squawk Box” on Friday morning about the lack of new federal funding. He noted that because vaccine boosters and antiviral pills are only cleared through Emergency Use Authorization, the government is the only allowed purchaser.
    “So if the government doesn’t have money, nobody can get the vaccine,” Bourla said.

    While concerns about pandemic preparedness have not gone away, neither has work on the vaccines, new medicines and Covid surveillance.
    Moderna said last week that it had started a trial of a vaccine against both omicron and the original strain of the virus to help inform public health authorities making decisions about boosters for the fall.
    Bourla also said Friday that Pfizer expects to submit data to the U.S. Food and Drug Administration soon for a fourth shot, or a second booster, of its vaccine. He said data shows that while protection against hospitalization and death from the omicron variant is high with three doses, “it doesn’t last long — after three or four months, it starts waning.”
    Dr. Clay Marsh, chancellor and executive dean for health sciences at West Virginia University and the state’s Covid czar, agreed that emerging information from Israel and the UK — both of which are administering additional doses to the elderly — supports considering additional boosters in the U.S.
    “To me, that’s something that the [Centers for Disease Control and Prevention] and the FDA should be leading,” Marsh said. “And I don’t see it.”
    Marsh said the state has enough vaccine supply to administer additional boosters, if authorized. He noted that antiviral pills — or at least the most preferred one, Pfizer’s Paxlovid — still are not plentiful.

    States have received about 689,000 courses of Paxlovid since it started shipping in December, federal data shows, compared with more than 2 million courses of Merck’s antiviral pill, molnupiravir. But Merck’s drug is typically a last-choice option for prescribers due to lower efficacy and safety concerns for some groups, Marsh said.
    He noted that Paxlovid can also be complicated to prescribe because it interacts with some commonly used medications, like statins.
    Monoclonal antibody drugs are typically the next choice after Paxlovid, he explained. There are two available as treatments — sotrovimab, from Vir Biotechnology and GlaxoSmithKline, and bebtelovimab, just authorized from Eli Lilly — after omicron rendered earlier antibody drugs such as a Regeneron cocktail ineffective.

    In an interview last week, Regeneron’s chief scientist said the company is assessing variants to decide on the best new combination of antibodies to bring through clinical testing and the FDA authorization process.
    “What we learned is that no single antibody and even the cocktail of antibodies that we employed can withstand all these variants,” Regeneron’s Dr. George Yancopoulos explained. “So what you have to have is a very large collection of different antibodies, which is what we’ve been assembling over the years.”
    He said the company is discussing with the FDA a strategy to have a series of antibody drugs tested in humans for safety and initial data. In the case of a new surge, Regeneron would be able to rapidly choose the right antibodies to put in a new drug.
    The timeline for getting that drug to market would depend on whether the agency adopts a more flexible regulatory pathway, similar to what it did for Covid vaccines, he said. It could mean the difference between months and weeks for the availability of a new drug during a surge.
    Whether another surge will take place is, of course, an open question. Cases have climbed slightly in Europe, Evercore ISI’s Michael Newshel pointed out Thursday in his research note on Covid surveillance. What’s more, The U.K.’s rise in hospitalizations has perplexed experts there.
    In the U.S., the University of California San Francisco’s Dr. Bob Wachter suggested the U.K. data may mean a “need to resume more caution in a month or two.”

    A Biobot Analytics employee holds a sample of wastewater used for coronavirus surveillance.
    Source: Biobot Analytics

    If a new surge happens, the first clues may come from wastewater. While the U.S. system for monitoring sewage for upticks in the coronavirus is still piecemeal, in cities where it is employed, it can provide a lead time of as many as a few weeks before cases start to rise, said Dr. Mariana Matus, CEO and co-founder of Biobot Analytics.
    The company works with a network of wastewater treatment plants across 37 states, covering about 20 million people. Each week, it tests samples comprising less than a cup of wastewater for their concentration of the coronavirus; one $350 test can represent between 10,000 and 2 million people, Matus said in an interview.
    “People who get infected with the disease will start shedding very early on ahead of developing symptoms,” she explained. “So they start to produce a signal in the wastewater even before they feel that they should go and get a test. And that’s super powerful.”

    Testing volumes have declined along with the omicron health crisis in the U.S., making this kind of passive surveillance more helpful, especially in large population centers like New York City and Los Angeles, Marsh said.
    Though cases are declining, experts stressed it’s not time to become complacent about Covid.
    “The problem here and throughout the world is that the memory of what happened fades very quickly,” Fauci warned. “I would hope that this completely catastrophic experience that we’ve had over the last two-plus years will make it so that we don’t forget, and we do the kind of pandemic preparedness that is absolutely essential.”
    — CNBC’s Nick Wells and Leanne Miller contributed to this report

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    Bipartisan group of lawmakers pushes IRS for answers on 'numerous problems' facing taxpayers

    A group of bipartisan lawmakers sent letters to IRS Commissioner Charles Rettig, pressing for answers on “numerous” taxpayer concerns.
    Members from both chambers are seeking a response to questions about automated notices, penalty relief, among other issues.

    Signage outside the Internal Revenue Service (IRS) headquarters in Washington, D.C.
    Bloomberg | Bloomberg | Getty Images

    A group of bipartisan lawmakers is pressing the IRS for answers on lingering issues amid a backlog of millions of unprocessed returns.
    Sens. Bob Menendez, D-N.J., and Bill Cassidy, R-La., members of the Senate Finance Committee overseeing the IRS, alongside Reps. Jimmy Panetta, D-Calif.; Abigail Spanberger, D-Va.; Brian Higgins, D-N.Y.; Gus Bilirakis, R-Fla.; and Mike Kelly, R-Pa., reiterated ongoing concerns and pushed for relief in letters to IRS Commissioner Charles Rettig.

    “We remain concerned that the IRS does not have a comprehensive plan to remedy the numerous problems affecting taxpayers, despite the fact that this filing season is already well underway,” the lawmakers wrote.
    More from Personal Finance:IRS to hire 10,000 workers to tackle backlog of millionsThis is the average IRS refund payment so farIRS unveils Taxpayer Experience Office to improve customer service
    “For example, there is continued confusion about which notices may be unilaterally suspended by the IRS, beyond the notices the IRS has already suspended, among other issues,” they said.
    The lawmakers want to know which notices must be issued within a certain timeframe by law, and why others still haven’t been suspended. The agency in February temporarily halted more than a dozen types of automated letters, including some for unpaid taxes. 
    They have also asked for clarification on the process for penalty abatement, including for taxpayers who already received relief in 2020 and 2021, asking for an IRS response by the close of business on March 14.

    The IRS did not immediately respond to CNBC’s request for comment.
    The letters come as the IRS plans to hire 10,000 workers, with 5,000 new employees in the next few months, to tackle a backlog of more than 20 million unprocessed returns. While the influx isn’t likely to help before the April 18 filing deadline, it may provide a boost through the rest of the year.
    Congress has approved $12.6 billion for the agency’s 2022 budget, a 6% increase from 2021, as part of the $1.5 trillion omnibus spending package, focused on taxpayer service. Last year, President Joe Biden requested $80 billion over the next decade to combat tax evasion from wealthy Americans.

    The letters have support from the Association of International Certified Professional Accountants, Padgett Business Services, National Association of Enrolled Agents and National Association of Tax Professionals, among others.
    “Since the beginning of tax season, the AICPA, members of Congress and various organizations representing taxpayers and practitioners have urged the IRS to take significant and meaningful steps to mitigate the anticipated challenges of this tax season,” AICPA President and CEO Barry Melancon said in a statement. 
    “The tax season is well underway, and we hope the IRS will heed the widespread calls for meaningful relief and take the necessary steps to ease taxpayers’ burden and frustration,” he said.

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    Ford and Volkswagen expand EV partnership to a second electric model for the European market

    Volkswagen is expanding its electric-vehicle collaboration with Ford Motor, the company said Monday, signing on to supply the EV architecture for a second Ford model for the European market.
    Ford said it now expects to produce 1.2 million electric vehicles using Volkswagen’s platform over six years, starting in 2023 — double its previous production plans.
    Ford and Volkswagen first announced a broad collaboration on electric and autonomous vehicles in 2019.

    Volkswagen EV platform
    Meghan Reeder | CNBC

    Volkswagen is expanding its electric-vehicle collaboration with Ford Motor, the company said Monday, signing on to supply the EV architecture for a second Ford model for the European market.
    As part of the expansion, Ford said it now expects to produce 1.2 million electric vehicles using Volkswagen’s platform over six years, starting in 2023 — double its previous production plans.

    The news was part of a broader Ford plan for electric vehicles in Europe announced earlier on Monday.
    “Profitability and speed are now crucial for finally achieving the breakthrough of e-mobility in Europe. We are tackling both together with Ford,” said Thomas Schmall, who runs VW’s components business.
    Ford and Volkswagen first announced a broad collaboration on electric and autonomous vehicles in 2019. The partnership has since expanded to include joint efforts on internal-combustion commercial vehicles and a $2.6 billion investment by Volkswagen in Argo AI, a Ford-backed self-driving startup based in Pittsburgh.
    Historically it’s very unusual for two global automakers to collaborate at this depth. But such collaborations have become more common in recent years as automakers grapple with the costs and resources needed to transition to zero-emissions vehicles with higher levels of automation.
    General Motors and Honda have a similar partnership, under which Honda invested in GM’s self-driving subsidiary, Cruise, and committed to using GM’s electric-vehicle technology in two upcoming Honda models for the U.S. market. The two automakers have collaborated on hydrogen fuel cells since 2013, and more recently set up a joint venture to mass-produce fuel cells in Michigan. But Honda last year stepped away from a longer-term plan to use GM’s EV architecture and said that it will develop its own for new models coming later this decade.

    The first Ford model to use Volkswagen’s EV architecture will be a battery-electric crossover SUV, expected to begin shipping next year. Ford hasn’t yet released details about the second planned model.
    Both will be built at Ford’s manufacturing complex in Cologne, Germany.

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    U.S.-traded shares of Nio and other Chinese EV makers are down sharply on delisting fears

    The SEC has signaled that it will take action against U.S.-listed Chinese companies that don’t comply with U.S. audit requirements, and named five such companies last week.
    Nio, XPeng, and Li Auto haven’t been named by the SEC, but shares are down as U.S. investors reassess their exposure to China.

    Nio’s et5 electric sedan is set to begin deliveries in Sept. 2022.

    U.S.-listed shares of Chinese electric vehicle makers opened sharply lower on Monday, under pressure with other Chinese companies’ U.S.-listed issues amid a new round of delisting fears.
    Shares of Nio, XPeng, and Li Auto were all down over 10% in early trading on Monday. The three were still down 4.4%, 7.2%, and 10%, respectively, as of 10:55 a.m. EDT.

    The Securities and Exchange Commission last week identified five Chinese companies with U.S.-listed shares that have failed to meet the audit requirements of the Holding Foreign Companies Accountable Act.
    The act allows the SEC to delist and ban companies from trading on U.S. exchanges if regulators are unable to review company audits for three consecutive years. Formally naming, or “identifying,” the companies is the first step in that process.
    Nio, XPeng, and Li Auto haven’t been named by the SEC. Yet investors appear to have interpreted the move as a sign that the SEC may pursue actions against other Chinese companies’ U.S. listings. A company that has been delisted cannot offer new shares to U.S. investors, limiting its ability to raise additional capital – a significant concern for early-stage automakers.
    All three EV companies have added listings in Hong Kong as a hedge against possible U.S. regulatory action. Nio’s was completed last week after the company used a fast-track listing procedure that didn’t involve raising funds. Xpeng and Li Auto followed more traditional paths to their Hong Kong listings last year, raising $2.1 billion and $1.5 billion respectively.

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