Electric vehicle stocks push higher on hopes for supply chain relief in China

Apr. 13, 2022 1:43 PM ETXL Fleet Corp. (XL), BEEM, EMBK, KNDILI, TSLA, NIO, RIVN, XPEV, VLTA, INVZ, ZEV, AURBy: Clark Schultz, SA News Editor17 Comments

Bridge in Hong Kong and Container Cargo freight ship

Nikada/E+ via Getty Images

The electric vehicle sector showed some energy on Wednesday after COVID restrictions in Shanghai were eased a bit.

Some residents of Shanghai were allowed out of their houses and apartments following a two-week shutdown period tied to a rapidly rising number of COVID cases.

The Chinese government said some markets and pharmacies would reopen even with health officials warning that Shanghai does not have the outbreak all the way under control yet. Social media reports have cropped up over the last few days showing various forms of protests in Shanghai over the lockdowns.

The re-opening of Shanghai would be positive for companies producing vehicles in China like Tesla (TSLA +2.5%), Li Auto (LI +4.7%), Nio (NIO +4.0%), XPeng (XPEV +6.3%) and Kandi Technologies (NASDAQ:KNDI +2.6%). The hope is that tier 1 suppliers could ramp up production again, although there are some concerns that tier 2, tier 3 and tier 4 suppliers could face production halts elsewhere in China as the COVID battle continues.

Leading gainers in the EV sector on Wednesday included Embark Technology (NASDAQ:EMBK +8.4%), Beam Global (NASDAQ:BEEM +6.2%), XL Fleet (NYSE:XL +4.7%), Aurora Innovation (AUR +6.8%), Rivian Automotive (RIVN +5.2%), Volta Inc. (VLTA +3.3%), Lightning eMotors (ZEV +4.1%) and Innoviz Technologies (INVZ +4.5%).

Tesla (TSLA) is still the EV stock with the highest Seeking Alpha Quant Rating.

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