why volatility has surpassed battery costs and stalled China’s L3 autonomy push

Summary: A semiconductor supply shortage and tax policy changes have raised costs for Chinese NEV manufacturers in early 2026. Automotive DRAM prices surged 180%, with demands from AI server production limiting supply. Nio and Li-Auto face premium pricing challenges, while Xiaomi adjusts prices of the SU7 to counteract rising costs. Demand continues to outpace supply, impacting margins into Q2 2026.

Brands mentioned: Nio, Li-Auto, Xiaomi, Samsung, SK Hynix, Micron, ChangXin Memory Technologies