Today, Chinese EV stocks are roaring higher. Indeed, it appears bullish sentiment is once again taking hold of these growth stocks. The share prices of Nio (NYSE:NIO), Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV) are all up between 5% and 9% at the time of writing.
Today’s move in Chinese EV stocks marks a reversal of an otherwise bearish trend with these stocks. Prior to the recent Federal Reserve commentary, these stocks all saw meaningful declines. However, the rebound in these stocks today has provided investors with a confirmation of their value as growth stocks in an otherwise volatile market.
Let’s take a look at what’s driving each of these stocks higher today.
Chinese EV Stocks Taking Off Today
In the case of Nio, it appears a number of catalysts are at play today. The company made a big announcement it intends to enter the German market by 2022. This announcement was followed by a bullish industry report on the growth the battery-as-a-service market could see in Europe in the coming years. Additionally, Nio announced its first highway battery swap location in China. Given all the interest around EV infrastructure of late, Nio is capitalizing on this momentum via building out its footprint to ensure long-term growth.
For investors in LI stock, infrastructure appears to also be the topic of discussion today. In Li’s case, the company has reportedly put a job posting out for a Beijing plant manager. This has cemented rumors that Li could be moving in a big way into building a large-scale factory in or near Beijing. Such a move could provide outsized growth for investors bullish on the Chinese EV market. Accordingly, shares of Li are up big — approximately 9% — on this news.
Xpeng is another player with its own interesting social media chatter today. The company’s P7 Valet Parking Assist is being touted as “one step closer to fully autonomous parking.” Those bullish on the autonomous aspect of the EV revolution are buying into Xpeng’s technological advancements today. Currently, XPEV stock is up 8% on this news.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
