EV stocks continue to surge on Chinese car demand


Electric vehicle companies are continuing to have a fantastic quarter. While most American EV companies have already reported excellent Q2 figures, new results over from Chinese-based car makers have proven to be another encouraging sign for the industry as a whole.  EV stocks shot up significantly on Monday, with Tesla (NASDAQ: TSLA) reporting its fourth straight daily gain in a row thanks to positive signs from the overseas market.

Most electric vehicle manufacturers have seen stock price jumps following strong China delivery reports from companies like Nio (NASDAQ: NIO), XPeng (NASDAQ: PEV), and Li Auto (NASDAQ: LI). Despite previous concerns over Chinese crackdowns over U.S.-listed companies, EV stocks are gaining right now as optimism surrounding Chinese demand continues to rise. Shanghai-based analyst Gao Shen argued that Xpeng and Li Auto could sell more than 10,000 cars per month, a threshold that could be reached within the year.

All three Chinese carmakers, which reported their results on Monday, saw significant increases in total deliveries for the quarter. Li Auto reported an 11.4% monthly increase, as well as a 251.3% increase in last year’s figures. So far this year, Li Auto has delivered more than 38,000 cars. Nio has delivered more than 125,500 vehicles so far in 2021, although 12-month growth is up 124.5%, a bit less than Li Auto.  The smallest of which was XPeng, reporting just 8,000 EV deliveries in Q2, although that’s still a 22% increase from last month and a 228% increase from last year.

China is considered the largest market in the world for electric vehicles. Despite the obvious consideration of its massive population, the Chinese government is encouraging its citizens to make the migration to electric vehicles. A similar trend is happening all around the world. Norway, one of Europe’s top exporters of fossil fuels, plans to ban gas-car sales by 2025. States and provinces like California and Quebec are both gearing up to ban gas-car sales by 2030.

Overall, most EV stocks are up thanks to this news. XPeng is up around 7.1% right now, while Nio and Li Auto are up 2.4% and 1.1%. Tesla is gaining around 5.7% as well, especially since China is Tesla’s biggest potential market, although competition is growing there. The best performing EV stock of the day was Full Truck Alliance (NASDAQ: YMM), which was up as much as 18.5%.

Another indirect catalyst could be the news surrounding the $1 trillion infrastructure plan that was recently finalized. Although it still needs to pass through the Senate and then go through the House of Representatives, the infrastructure plan does include some degree of EV incentives. While not as much as President Biden initially hoped for, there’s enough here that traders could be reacting to this news as well.

Full Truck Alliance Company Profile

Full Truck Alliance Co Ltd, through its subsidiaries, provides comprehensive services for shippers and truckers through its mobile and website platforms. Its principal operations are in the People’s Republic of China. The group derives its revenues principally from shippers’ and truckers’ use of its platforms in connection with freight matching services and value-added services. – Warrior Trading News