Shares of Chinese EV makers rise, led by Tesla profit, appetite for tech

By Binyan Wang

Shares of Chinese electric vehicles rose early on Wednesday, helped by positive news for global technology companies and also by shares of US rival Tesla.
Hong Kong-listed shares of Li Auto, Xpeng and NIO rose 8.2%, 7.3% and 6.8%, respectively, by midday, after Tesla shares rose for a 13th consecutive session to a record high, after General Motors last week said its future.  EVs use Tesla’s charging hardware.

The tech-heavy US Nasdaq index has gained ground for four straight sessions and appetite for technology increased further on relatively subdued US inflation on Tuesday, raising hopes of a pause in the Fed’s rate hikes.
Closer to home, Xpeng said this week that it had more than 25,000 pre-sales orders for the all-electric G6 model in China, just three days after the first production models showed up in showrooms.  Shares have risen nearly 28% over the past four trading sessions, reversing losses experienced earlier this year.
Chinese media reported Monday that NIO is in talks with other brands to share the battery swapping system, citing comments from NIO’s founder.  The technology allows EV drivers to quickly swap out depleted batteries for fully charged ones.
NIO announced on Monday that it will reduce vehicle prices following discounts by other companies to attract more buyers.
Lee Auto announced on Tuesday that  As of June 11, weekly sales reached a record high of 8,400 units.  Shares are up 73% year to date.
Still, some analysts say all EV makers face headwinds in the long term as competition increases and Chinese consumption slows.
Some investment banks lowered their ratings and price targets on the stock after NIO posted its earnings miss on Friday.  Analysts believe that NIO may face significant profit pressures and the growth boosted by price cuts is unsustainable.
Citi analysts said in a research note on Monday that while the XPG’s new SUV has received better-than-expected orders since its launch, the trend is unlikely to last.  He maintained a sell rating on the stock, saying the model is “less likely to change the big picture for the company” amid increasing competition.
Write to Bingyan Wang at Bingyan.wang@wsj.com