Chinese EV companies’ sales are soaring, and so are their stocks
Shares of Chinese electric-vehicle companies listed on US exchanges are soaring on Monday after the cohort reported robust October sales figures, buoyed in part by the government policies that incentivized consumers to replace their ICE vehicles with EVs.
The ADRs of XPeng Inc and Geely Automobile Holdings are up more than 5% as of 10:30 a.m. ET, while Nio Inc and BYD Co’s are up in excess of 2%.
It’s not quite apples to apples (and the law of large numbers certainly applies), but the sales growth out of major Chinese automakers trounced the growth of all US auto sales in October.
Government subsidies to encourage EV purchases played a role in October’s sales success. But, over at Bloomberg Opinion, David Fickling convincingly argues that industrial policy no longer explains the ascension of China to a dominant position in this emergent sector.
When even Ford’s CEO doesn’t want to give up his Chinese EV, they must be doing something right.
