Make sure your battery is charged up and ready to go, because this trio of Chinese EV stocks is racing higher today. Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV) and Nio (NYSE:NIO) stock are all climbing in pre-market trading thanks to two big news items. So what do you need to know?
The first big catalyst comes from the China Passenger Car Association. That agency announced on Tuesday that electric vehicle sales rose sevenfold year over year in February. Although monthly sales of 97,000 were down 38% from January, many analysts still see these figures as bullish for EV stocks. For instance, Wedbush analyst Dan Ives attributed much of the month-over-month decline to the Lunar New Year holiday. With that in the rear-view mirror, he is betting on continued strength in March sales.
For LI, XPEV and NIO stock, this report seems to be helping the hard-hit equities charge up. As Tomi Kilgore highlighted for MarketWatch, the last few days have been far from kind. News of an ongoing chip shortage, mixed earnings and growing risk-off sentiment has hit the EV names. NIO alone has lost roughly 30% in a five-day streak.
Importantly, there is another catalyst on the horizon for this trio of EV stocks. As Reuters reported early this morning, all three are eyeing dual listings in Hong Kong. They are all considering listing as soon as this year, in a move that could raise $5 billion. Xpeng is also considering a third listing in Shanghai.
Why does this matter? As China continues to invest in green technology, these dual listings could help the EV stocks leverage investor interest closer to home. These listings could also be the shock LI, XPEV and NIO stock need to start climbing higher again.
EV Stocks: Where Do LI, XPEV and NIO Stock Go?
So what do these headlines mean for EV stocks? And what about the selloff we have witnessed in LI stock, XPEV stock and NIO stock?
InvestorPlace analyst Luke Lango says he sees the writing on the wall. He sees exactly why fans of these equities have helped them race higher. The electric vehicle revolution is coming. Right now, he just sees some disconnect between the industry and stock prices. That is why he has a list of EV stocks to buy on the dip.
With the latest news, it is clear that Li Auto, Xpeng and Nio are going to continue to leverage investor interest and technological advancement. The road ahead may not be smooth, but you should keep this story on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.