The U.S.-listed shares of China-based electric-vehicle maker Nio Inc. rallied Monday after reports that China’s state planning body is urging cities to ease car-buying restrictions and to promote the use of EVs.
Nio’s
NIO,
stock climbed 3.6% in morning trading toward the highest close since Oct. 5, 2022. It has run up 48% amid a seven-day winning streak.
That would be the longest winning streak since the seven-session stretch that ended April 26, 2021. The longest winning streak since Nio went public in September 2018 was a nine-day streak that ended Jan. 21, 2020.
And the 48% gain during the current streak would be the best seven-day performance for the stock since it soared 51.3% over the seven sessions through Nov. 6, 2020.
Nio shares have rocketed 94% over the past three months, while the iShares MSCI China exchange-traded fund
MSCI,
has tacked on 4% and the S&P 500
SPX,
has gained 10%.
Over the weekend, China’s National Development and Reform Commission urged local governments to ease car-purchase restrictions and roll out measures to stimulate new-car purchases, Dow Jones Newswires reported. The commission also told local officials to promote use of EVs in the countryside and to upgrade EV-charging infrastructure.
That comes about a week after China’s Politburo gave an upbeat assessment of the nation’s economy and promised further support, while acknowledging growth headwinds.
Also read: Nio helps lead strong China stock rally amid upbeat economic commentary
But while Nio’s stock rallied, shares of some rival China-based EV makers were pulling back.
XPeng Inc.’s
XPEV,
stock tumbled 13.6% in morning trading. The stock had skyrocketed 52.2% over the previous three sessions after Volkswagen AG said it was investing $700 million in the company as part of a cooperation agreement in which the companies jointly develop VW-branded EVs for China’s market.
Li Auto Inc.’s
LI,
stock fell 0.6% after hiking up 9.6% on Friday to close at the highest price since closing at a record $43.96 on Nov. 24, 2020.
And shares of Tesla Inc.
TSLA,
which generated 23% of its total second-quarter revenue in China, edged up 0.2%.
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