Nio (NYSE:NIO) stock continues to enjoy one of its longest rallies since 2021. Indeed, NIO stock closed up by about 4% today on news that China is will promote the use of emissions-less vehicles amid plans to ease car-buying restrictions in the country.
What’s behind NIO stock’s surge today?
Well, the electric vehicle (EV) maker appears to be enjoying the fruits of an especially generous Chinese government lately. Over the weekend, China’s National Development and Reform Commission “urged local governments to ease car-purchase restrictions and roll out measures to stimulate new-car purchases.” This includes the use of EVs in less metropolitan areas as well as the expansion of charging infrastructure in the country.
This move comes just a week after China’s top brass — its Politburo leadership — made optimistic comments on the state of China’s economy and business development over the first half of the year. As part of the missive, Politburo vowed to initiate policies to help high-growth industries in the country, including its burgeoning EV businesses.
NIO Stock Enjoys Longest Rally in Years
As a result of today’s China-fueled surge, NIO stock is in the midst of its longest rally since April 2021. Indeed, the company has climbed more than 48% in the past seven trading days. Its longest rally ever was a nine-day winning streak ended Jan. 21, 2020.
Not alone, Chinese EV stocks in general have enjoyed a notably strong past week. The industry has been flourishing in the wake of China’s business-friendly commentary as well as Volkswagen’s (OTCMKTS:VWAGY) recent $700 million investment in Chinese EV maker XPeng (NYSE:XPEV).
Despite this, only NIO stock was able to keep up the momentum today. XPeng closed the day down by over 10% while Li Auto (NASDAQ:LI) closed just barely in the green.
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 InvestorPlace.com Publishing Guidelines.
