Chinese EV Stocks Alert: Why Are NIO, LI, XPEV Stocks Up Today?

Today, a number of the biggest Chinese electric vehicle (EV) companies are in focus amidst a major jump. Specifically, Chinese EV stocks Nio (NYSE:NIO), Li Auto (NASDAQ:LI) and XPeng (NYSE:XPEV) are all sporting strong gains at market close.

Electric vehicle logo painted on a blue street
Source: Shutterstock

What’s going on with Chinese EV companies?

Well, it seems EV stocks have been caught up in the wider Chinese stock rally that hit the markets today. After nearly two weeks in the red amidst mounting regulatory fears, a positive glimmer has finally appeared. The news? China is in talks with U.S. regulators to sort out an auditing conflict that’s threatening to delist a number of China-based companies from U.S. exchanges.

Last week, the U.S. Securities and Exchange Commission (SEC) highlighted five Chinese companies at risk of being delisted. The companies had neglected to offer auditing forms the SEC had requested. This sent Chinese stocks tumbling nearly across the board, with some companies logging drops of more than 50%.

NIO, LI and XPEV stocks were unfortunate casualties of the downturn. However, it appears the storm cloud may have now passed.

Chinese EV Stocks See Strong Gains After Regulatory Hurdle

China is one of the largest potential EV markets in the world. So, it makes sense to see EV makers on the rise given recent events. Currently, NIO stock and LI stock are up 10% and nearly 13% for the day, respectively. However, XPEV stock is really the biggest winner. Shares closed the day up more than 15% on the promising news.

Today, XPeng and its stock may have benefited from yesterday’s news as well; the company has invested millions in smart EV investment fund Rockets Capital. The China-based investment fund reported more than $200 million in investments from XPeng as well as other funds.

Despite recent worries, it appears EVs remain a strong growth opportunity in China.

On the date of publication, Shrey Dua did not hold (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 Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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