Chinese EV stocks surge after positive notes from Morgan Stanley, predicting near-term gains

From Investing.com: 2024-04-26 13:42:17

Shares of Chinese electric vehicle stocks Li Auto Inc., NIO Inc., and XPeng Inc. surged following positive notes from Morgan Stanley analysts predicting share price increases over the next 15 days. LI shares rose 7%, NIO shares gained 9.2%, and XPeng shares jumped 10.7%.

Morgan Stanley labeled the three stocks as “Research Tactical Ideas” and expects their share prices to increase in absolute terms in the short term. The recent drop in the stocks’ prices has made their short-term valuation more attractive.

China’s Ministry of Commerce announced subsidies for consumers who trade in old vehicles for qualifying ICEV or NEV models, boosting sector demand. The investment bank predicts a 70% to 80% probability that the stocks will rise in line with their expectations.



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