Chinese electric car makers add $ 13.65 billion to Tesla’s rise

GUANGZHOU, China – Three Chinese electric car makers listed in the United States added a collective value of $ 13.65 billion on Tuesday as their stock prices rose.

Chinese start-ups – Nio, Xpeng Motors and Li Auto – have followed their American rival Tesla higher.

Tesla shares jumped nearly 20% on Wednesday as Wall Street tech stocks rallied overnight.

On Tuesday, Nio closed up 17.44% to $ 41.35, Li Auto was up 8.2% to $ 23.08 and Xpeng Motors was up 11.33% to $ 29.97.

Manufacturers of electric vehicles were also boosted by a Reuters report that said the three companies could conduct a secondary listing in Hong Kong as early as this year. Secondary listings in Hong Kong have been a popular avenue for Chinese companies already listed on Wall Street.

Nio, Li Auto and Xpeng have had huge rallies so far. Nio has grown by over 1,000% in the past 12 months. Xpeng’s share price has nearly doubled since its IPO in August.

The three automakers have also released their forecast for vehicle deliveries for the first quarter.

Nio said he plans to deliver 20,000 to 20,500 cars in the March quarter, more than the December quarter. Xpeng expects deliveries of 12,500 vehicles in the first quarter, down slightly from the fourth quarter. Li Auto said it will deliver between 10,500 and 11,500 cars in the first three months of 2021, lower than its fourth quarter deliveries. The first quarter was for the Chinese New Year holidays.

In February, retail sales of so-called new energy passenger vehicles reached 97,000, an increase of 675% year-over-year, according to the China Passenger Car Association. As of February 2020, almost all of China was effectively locked down to deal with the coronavirus outbreak, which represents a weak base. But the figures for February 2021 were a 37.9% drop from January.