By Jiahui Huang
Shares of Chinese electric-vehicle makers rose sharply in Hong Kong, buoyed by a robust sales outlook for March and the selloff in Tesla's stock overnight.
NIO's shares were 8.7% higher by midday Tuesday and XPeng was up 6.2%. Automakers Zhejiang Leapmotor Technology and Great Wall Motor climbed 4.9% and 1.65%, respectively. They all outperformed the benchmark Hang Seng Index, which was 0.9% lower at midday.
The gains came after U.S. rival Tesla's shares notched their worst day since 2020 and Chinese EV makers reported strong monthly sales numbers that analysts expect to strengthen further this month.
Tesla's shares fell 15% Monday, erasing their postelection gains. Disappointing sales data and concerns about Chief Executive Elon Musk's role in the Trump administration have sent the stock sliding this year.
That was a sharp contrast with China, where electric-car sales continued their solid growth. February retail sales of new-energy cars, including battery EVs and plug-in hybrids, rose 80% to 686,000 units, the China Passenger Car Association said Monday.
The CPCA said it expects auto sales to remain robust in March, as carmakers often launch new models after the Lunar New Year. With local governments also offering some consumption-boosting policies, consumer sentiment could get a further boost, it said.
Among the individual gainers, Leapmotor shares rose sharply after the company turned a quarterly profit for the first time. It reported net profit of 80 million yuan, equivalent to $11 million, for the fourth quarter, one year ahead of its goal, and its gross margin reached a record 13.3%.
XPeng's shares got a lift after Citi upgraded the stock's rating to buy from neutral, citing strong orders for the EV maker's models in February and its commitment to artificial intelligence and robotics.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
March 11, 2025 01:05 ET (05:05 GMT)
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