Shares of China-based electric vehicle makers rose on Tuesday after October deliveries were reported, but glimmers of hope that China will ease a zero-Covid policy that has slowed the country’s economy also helped fuel rallies.
The US-listed shares of XPeng Inc
jumped 6.3 percent in premarket trade after suffering a record monthly loss of 44.6 percent in October to close Monday at a record low.
The stock’s previous record monthly loss was suffered the previous month, when it tumbled 35.5% in September. Shares tumbled 79.1% amid a four-month losing streak.
The company previously said it delivered 5,101 electric vehicles in October, or just over half of the 10,138 vehicles delivered in the same month a year ago, down from 8,468 vehicles delivered a month ago. Last month’s deliveries included 2,104 P7 sports sedans, 1,665 P5 family sedans and 709 G3i compact sport utility vehicles (SUVs).
Tuesday’s stock rally comes as The Wall Street Journal reportedas well as several other media outlets, that Chinese stock markets appear to have rallied following an anonymous post on social media in China that suggested government may ease COVID-related restrictionswhich have hinders economic growth, starting in March. The reports helped lift Hong Kong’s Hang Seng index
5.2% higher and the Shanghai Composite Index
US markets also appeared to be higher as futures
for the S&P 500 index
Elsewhere, US-listed shares of Nio Inc.
rose 7.6% before Tuesday’s open after losing 38.7% in October. It was the worst monthly performance since it plunged 45.5% in September 2019.
Separately, XPeng said it received an intelligent connected vehicle test permit in Guangzhou for the XPENG G9, the first unmodified commercial vehicle to qualify for autonomous driving tests on public roads in China.
Nio reported on Tuesday October deliveries at 10,059 EVwhich is a 174.3% increase over the 3,667 vehicles delivered a year ago, and bringing total year-to-date deliveries to 259,563 EVs.
The company noted that in October it introduced the ET7 and ET5 sedans and the EL7 five-seat electric SUV for European markets.
Also, shares of Li Auto Inc
climbed 9.8% premarket, after a monthly record loss of 40.8% in October, to close Monday at a record low. Shares tumbled 64.4% amid a four-month losing streak.
Earlier in October, Li reported shipments of 10,052 electric vehicles, up 31.4% from a year ago. The company has already delivered a total of 221,067 electric cars this year.
Separately, shares of US-based EV giant Tesla Inc.
rose 2.3% before Tuesday’s open. The company generated $5.13 billion in revenue from its China operations in the third quarter, or 23.9% of total revenue of $21.45 billion.
A year ago, China-based revenue of $3.11 billion was 22.6% of total revenue of $13.76 billion.