XPeng and Nio lead big day for China-related auto stocks
Oct. 15, 2021 11:35 AM ET Kandi Technologies Group, Inc. (KNDI), NIO, LI, XPEV BYDDY, TSLA, F, FFIE By: Clark Schultz, SA News Editor 21 Comments
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XPeng ( XPEV +8.7%), Li Auto ( LI +4.8%), Nio ( NIO +4.5%) and Kandi Technologies ( KNDI +2.5%) are having a solid day as investors snap up China-related auto stocks again.
What is driving the gain? Investors may be noting that Chinese auto brands have carved out more market share in their local market during the global chip shortage at the expense of the German and Japanese automakers, even though overall sales volume was down in September. Notably, brands like BYD Company ( OTCPK:BYDDY +5.1%), Nio, state-owned SAIC Motor and XPeng are also looking to export to Europe as they continue to use Norway as a testing ground.
"We’ve had a long-standing thesis that China will use battery-electric vehicles as the medium to become a significantly more powerful player in the industry," says RBC Capital Markets analyst Joe Spak on the developing trend.
Tesla ( TSLA +1.9%) is also higher on the day with China a crucial part of the bullish thesis on the EV stock. Ford Motor ( F +2.8%) is also in positive territory after reporting that China sales are up 11% Y/Y for the first three quarters of the year. Faraday Future Intelligent Electric ( FFIE +3.6%) is also revving higher off the generally positive China vibe. |
