XPEV - XPeng and Nio lead big rally in Chinese electric vehicle names

A big rally in Chinese technology names on Wednesday has swept up a number of U.S.-traded China EV stocks as well. Traders have latched on to indications that COVID may have peaked in some larger Chinese cities and the border with Hong Kong will be reopened again. The big rally in China-related EV names took place even as concerns over demand have cropped up in recent weeks.

XPeng ( NYSE: XPEV ) shot up 16.49% , Nio ( NIO ) soared 12.15% , Kandi Technologies ( KNDI ) gained 8.80% , and Li Auto ( LI ) rallied 8.58% in mid-day trading.

Faraday Fuutes Intelligent ( FFIE ) +11.70% and Lucid Group ( LCID ) +8.50% were also notable risers on optimism over the China supply chain backdrop.

What to watch : The December deliveries reports from the sector met expectations. XPeng ( XPEV )reported 11.3K deliveries for December (-29% Y/Y, +94% M/M), Li Auto ( LI ) disclosed a deliveries tally of 21,233 (+51% Y/Y, +41% M/M), and Nio ( NIO ) came in with deliveries of 15,815 (+51% Y/Y, +12% M/M). Analysts are still mixed on the setup for those stocks for Q1 due to the uncertainty with the economy, supply chain, and new competition. In particular, the pricing backdrop is being analyzed closely with Tesla adjusting prices recently.

Read a recent breakdown on Nio ( NIO ) from Seeking Alpha contributor Livy Investment Research.

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