EV investors have pivoted towards China lately, making the most of US-listed Chinese stocks as a route towards a one-step-ahead EV landscape. While US manufacturers are somewhat hinged to a widespread lack of new energy infrastructure, and that vehicle owners are still some way away from the ubiquitous EV vision of China, the ability to buy into a piece of the booming sector has seen a particular focus on companies like Li Auto (NASDAQ: LI) and its US-listed competitors Xpeng and Nio.
March was a promising month for Chinese EV stocks, with deliveries remaining strong across the board. Li Auto announced a rebound of deliveries in February, but in March resurging Covid cases resulted in a slight hit to production.
Over March, the popular manufacturer delivered 11,034 Li ONE SUVs, a 31% rise from February. Overall, Li delivered 31,716 vehicles, which results in a 152.1% year-on-year rise. Despite the company's evident monthly growth, the company wasn’t able to operate at maximum capacity due to a shortage of certain parts resulting from resurging Covid-19 cases in the Yangtze Delta region; the location of the Li Auto factory.
This month, Li will announce the release of its next hotly-anticipated vehicle in order to combat tightening competition, the L9 SUV, expected to hit the market on April 16th. On another note, sentiment toward Chinese stocks is positive after a report that Beijing will allow U.S auditors full access to over 200 Chinese companies listed on US exchanges; easing delisting fears that weighed on a large number of Chinese stocks. LI shares are currently trading at a solid gain of 8% following today’s delivery update.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.