By Bingyan Wang

 

Shares of Chinese electric vehicle makers rose early Wednesday, helped by positive news for global tech companies as well as a strong run by U.S. rival Tesla's shares.

Hong Kong-listed shares of Li Auto, Xpeng and NIO were up 8.2%, 7.3% and 6.8%, respectively, at mid-day, after Tesla shares rose for a record 13th straight session, boosted after General Motors last week said its upcoming EVs would make use of Tesla's charging hardware.

The tech-heavy U.S. Nasdaq index has gained ground for four consecutive sessions, and appetite for tech was further boosted by a relatively subdued U.S. inflation print Tuesday, which raised hopes of a pause in Fed rate hikes.

Closer to home, XPeng said this week that had more than 25,000 pre-sale orders for its all-electric G6 model in China in the three days after its first production models hit showrooms. Shares have gained about 28% in the past four trading sessions, reversing their losses from earlier this year.

NIO was helped by Chinese media reports Monday that it is in talks with other brands to share its battery swap system, citing comments by NIO's founder. The technology would allow EV drivers to quickly exchange depleted batteries for fully-charged ones.

NIO also announced Monday that it will cut vehicle prices, following other companies' cuts, in a bid to attract more buyers.

Li Auto said Tuesday that its weekly sales volume reached a record-high 8,400 units as of June 11. Shares have now risen 73% year to date.

Still, some analysts say all EV makers will face headwinds in the longer term given rising competition and subdued Chinese consumption.

Some investment banks lowered their stock ratings and price targets for NIO after it posted an earnings miss on Friday. Analysts believe NIO is likely to face increased margin pressure and that growth boosted by price cuts may be unsustainable.

Citi analysts said in a research note Monday that while Xpeng's new SUV received higher-than-expected orders after its launch, the trend is unlikely to last. They maintained a sell rating on the stock, saying the model is "unlikely to change the big picture for the company" amid rising competition.

 

Write to Bingyan Wang at bingyan.wang@wsj.com

 

(END) Dow Jones Newswires

June 14, 2023 01:24 ET (05:24 GMT)

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