Shares of U.S.-listed Chinese EV stocks are rebounding after a brutal Tuesday.
Hector Retamal/AFP via Getty Images
Shares of U.S.-listed Chinese electric vehicle makers are bouncing back on Wednesday after being caught up in the downdraft affecting all Chinese stocks this week. The recent drops don’t have anything to do with EV fundamentals.
(ticker: NIO) stock is up 4% in premarket trading Wednesday. Shares dropped 8.8% Tuesday and over the past five trading sessions, shares were down almost 11%.
(XPEV) stock is also up in premarket trading, bouncing 5.5% after falling almost 15% Tuesday. Shares of
(LI) gained 7.7% premarket after dropping 13.8% Tuesday.
The Nasdaq Golden Dragon China Index, consisting of Chinese stocks traded in the U.S., dropped 5.3% Tuesday and is down more than 18% over the past 6 trading sessions.
Nothing sending the Chinese EV stocks lower, however, has much to do with fundamentals. Take NIO. Its stock surged at the start of the year, hitting almost $67 in early January. Then rising interest rates and a global semiconductor shortage sent shares to a low of $30.71 in May. But Chinese EV demand remains strong and NIO deliveries have been solid. NIO stock hit $55.13 on July 1, before larger Chinese issues hit investor sentiment.
It’s been a wild year for the U.S.-listed Chinese EV stocks. All three are down year to date, about 15% on average, trailing behind the comparable 17% and 15% gains of the
In coming weeks, Chinese EV shares are likely to follow the rest of the market. Hong Kong’s
for instance, is up 1.5% in Wednesday overseas trading after dropping 4.1% Monday and 4.2% Tuesday. Down the road, however, the Chinese EV stocks should reflect the fundamentals of the global EV market.
Write to Al Root at firstname.lastname@example.org