NIO, Xpeng, Li Auto Stocks Surge Pre-Market As Retail Buzz Builds On PBoC Rate Cuts

Shares of Chinese electric vehicle (EV) makers Nio (NIO), Xpeng (XPEV), and Li Auto (LI) surged over 7% pre-market on Tuesday following news of a monetary policy boost from the People’s Bank of China (PBoC).

Nio and Xpeng were among the top 10 trending tickers on Stocktwits before the bell, driven by growing retail interest.

The PBoC announced a 50 basis point cut to the reserve requirement ratio (RRR) — the amount of cash banks must hold in reserve — along with a 0.2 percentage point reduction in the 7-day repo rate.

It reportedly marked the first time since 2015 that both measures were reduced on the same day, signaling a concerted effort by Beijing to stimulate its slowing economy.

Despite this surge, Chinese EV makers are facing headwinds, including a new U.S. government proposal to ban certain vehicles with parts from China and Russia due to national security concerns.

Still, the PBoC’s move provided immediate relief to market concerns over China’s economic slowdown, which has reportedly seen its weakest growth in five quarters.

In addition, Chinese automakers continue to outpace traditional players like Toyota (TM) and Volkswagen (VWAGY) in software development, a crucial factor for future profitability in the EV sector.

According to consultancy Gartner’s latest “digital carmaker index,” Nio and Xpeng ranked among the top 10, alongside Tesla (TSLA) and Rivian (RIVN), reflecting their growing competitive edge in the EV race.

Recent delivery data, according to CNevPost, showcases the strength of Chinese EV makers:

• Nio delivered 20,176 vehicles in August, marking its fourth consecutive month of 20,000+ deliveries, up 4.38% year-over-year.
• Li Auto delivered 48,122 vehicles in August, up 37.83% year-over-year, despite a slight dip from July.
• Xpeng achieved 14,036 deliveries in August, its sixth straight month of sequential growth, up 26% from July.

Year-to-date, however, all three automakers have struggled with stock performance, with Xpeng down 32%, Nio down 37%, and Li Auto down 36%.

Despite these losses, Tuesday’s pre-market surge highlights renewed investor optimism fueled by Beijing’s latest economic stimulus.
 

Share

·

Add us on