Shares of Chinese electric vehicle companies were trading in record territory Wednesday, with multiple catalysts working in their favor.
Strong October vehicle delivery numbers and the prospect of a change of guard in the White House to an administration in favor of green energy vehicles are apparently driving the stocks higher.
Nio Rally Accelerates: Nio Inc – ADR NIO shares were up on above-average volume and closing in on another psychological resistance point of $40. On Friday, the stock crossed the $30 level for the first time.
The momentum picked up this week when the EV maker reported record monthly deliveries in October.
The stock also reacted to separate reports on battery technology enhancement and overseas expansion.
In the year-to-date period, Nio has gained a whopping 800%.
Related Link: Why Nio Has A Shot At Becoming The 'Tesla Of China'
Li Auto, Xpeng Join The Rally: Xpeng Inc – ADR XPEV shares are also skyrocketing on above average volume. The company delivered a record 3,040 vehicles in October, representing a year-over-year increase of 229%.
The company's shares also received a shot in the arm from an analyst note.
Citibank analyst Jeff Chung raised the price target on the Buy-rated stock from $33.20 to $46.60, Barron's reported.
The company is likely to double its market share of battery electric vehicles to 6% in China by 2022, the analyst said.
Li Auto Inc. LI, which listed its ADSs on the Nasdaq in late July, said Monday it delivered 3,692 vehicles in October.
The company also said it achieved strong orders, setting a new monthly record.
The Price Action: At last check:
Nio shares were advancing 3.58% to $36.77, after rising as high as $39.75 intraday.
Xpeng was soaring 16.22% to $25.86
Li Auto was advancing 3.18% to $24.82.
Photo courtesy of Nio.
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