Why did Li Auto stock surge on Tuesday? Good news on COVID

Jun. 14, 2022 4:16 PM ETLi Auto Inc. (LI)NIO, XPEVBy: Kevin P. Curran, SA News Editor3 Comments

Li Auto electric car store. Chinese electric vehicle manufacturer

Robert Way/iStock Editorial via Getty Images

Li Auto (NASDAQ:LI) shares drove higher on Tuesday, continuing strong momentum established in the past month as COVID restrictions look as though they are fading in China.

For Shanghai specifically, 96.3% of industrial businesses tracked by the government were back to operating, according to government reports released on the day. For the restarted operation, a production rate above 70% was reported by state authorities.

Shanghai, which has been a key focus for Zero-Covid policies in China, is seen as a test case for much of the rest of the country. As such, positive trends are taken to be suggestive of policy shifts in neighboring regions as well.

Fellow Chinese automakers Nio (NIO) and Xpeng (XPEV) also rallied on the day, adding to their own gains of late as the sector once again grows in popularity after scaring many away in the spring.

Read more on recent delivery data from Nio.

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