Bond yield concerns pushed stocks across the board to red territory Monday morning, among them electric vehicle makers – all except Baidu Inc. (Nasdaq: BIDU) which was up 2%, at $345.80 per share.
That was a recovery from a $20 drop at market open, though it may yet catch up with the market fears of today. The Dow was down 19 points, the S&P fell 21 points and the Nasdaq Composite was about 208 points lower by 11 a.m. EST.
Even EV players, stock market favorites, are down. Tesla (Nasdaq: TSLA) was down 5%, while China’s Nio (NYSE: NIO), Li Auto Inc. (Nasdaq: LI), and Xpeng Inc. (NYSE: XPEV) each traded 4% down.
"The market is dancing on a knife's edge,” Michael Burry, “The Big Short” investor, tweeted over the weekend. Burry has become a trendsetter of investing in water, gold, and farmland. He is also known for predicting (and gaining on) the burst of the real estate bubble of 2007-2008.
Now, he is warning again, concerned by speculation, surging debt levels, and social day trading. But no one listens, he tweeted.
“Speculative stock #bubbles ultimately see the gamblers take on too much debt. #MarginDebt popularity accelerates at peaks,” Burry wrote Sunday. “Passive investing’s IQ drain, and #stonksgroup hype, add to the danger.”
Baidu was among the few stocks less affected by the downswing in the markets today.
The company, the maker of the autonomous driving system Apollo, has been taking strides in China’s electric vehicle space. On Monday, news surfaced that its joint EV venture with automaker Geely (OTC: GELYF) will be headed by Yiping Xia, co-founder and CTO of Mobike, who formerly served with Ford (NYSE: F) and Fiat Chrysler.