Shares of China-based electrical vehicle makers shot higher Tuesday after October deliveries were reported, but glimmers of hope that China will relax the zero-COVID policy that has slowed the country’s economy also helped fuel the rallies.
XPeng Inc.’s U.S.-listed stock XPEV, -3.92% jumped 6.3% in premarket trading, after suffering a record monthly loss of 44.6% in October to close Monday at a record low.
The stock’s previous record monthly loss was suffered the month before, when it tumbled 35.5% in September. The stock has plummeted 79.1% amid a four-month losing streak.
The company reported earlier that it delivered 5,101 electric vehicles in October, or a little more than half the 10,138 vehicles delivered in the same month a year ago, and down from the 8,468 vehicles delivered a month ago. The latest 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 reported, as did several other media outlets, that China’s stock markets appeared to rally after an anonymous social-media post in China suggesting the government may soften COVID-related restrictions, which have hampered economic growth, starting in March. The reports helped propel Hong Kong’s Hang Seng Index HSI, +5.23% 5.2% higher and the Shanghai Composite Index SHCOMP, +2.62% up 2.6%.
The U.S. markets also appeared to get a lift, as futures ES00, +1.03% for the S&P 500 index SPX, -0.75% advanced 0.9%.
Elsewhere, the U.S.-listed shares of Nio Inc. NIO, -0.21% hiked up 7.6% ahead of Tuesday’s open, after shedding 38.7% in October. That was the worst monthly performance since it plummeted 45.5% in September 2019.
Separately, XPeng said it obtained the Guangzhou Intelligent Connected Vehicle Road Test Permit for the XPENG G9, the first unmodified commercial vehicle to qualify for autonomous driving tests on public roads in China.
Nio reported Tuesday October deliveries of 10,059 EVs, up 174.3% from the 3,667 vehicles delivered a year ago, and bringing the year-to-date total deliveries to 259,563 EVs.
The company noted that in October, it unveiled the ET7 and ET5 sedans and the EL7 five-seater electric SUV for the European markets.
Also, Li Auto Inc.’s stock LI, -4.49% climbed 9.8% premarket, after a monthly-record loss of 40.8% in October to close Monday at a record low. The stock has slumped 64.4% amid a four-month losing streak.
Li reported earlier October deliveries of 10,052 EVs, up 31.4% from a year ago. The company has now delivered a total of 221,067 EVs this year.
Separately, shares of U.S.-based EV giant Tesla Inc. TSLA, -0.43% rose 2.3% ahead of Tuesday’s open. The company had generated $ 5.13 billion in revenue from its China operations during 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.