XPeng stock bounces off record low despite drop in deliveries, other China-based EVs also surge

Shares of China-based electrical vehicle makers shot higher Tuesday after October deliveries were reported, but glimmers of hope that China will relax the zero-COVID policy that has slowed the country’s economy also helped fuel the rallies.

XPeng Inc.’s U.S.-listed stock
XPEV
jumped 6.3% in premarket trading, after suffering a record monthly loss of 44.6% in October to close Monday at a record low.

The stock’s previous record monthly loss was suffered the month before, when it tumbled 35.5% in September. The stock has plummeted 79.1% amid a four-month losing streak.

The company reported earlier that it delivered 5,101 electric vehicles in October, or a little more than half the 10,138 vehicles delivered in the same month a year ago, and down from the 8,468 vehicles delivered a month ago. The latest month’s deliveries included 2,104 P7 sports sedans, 1,665 P5 family sedans and 709 G3i compact sport-utility vehicles (SUVs).

Tuesday’s stock rally comes as The Wall Street Journal reported, as did several other media outlets, that China’s stock markets appeared to rally after an anonymous social-media post in China suggesting the government may soften COVID-related restrictions, which have hampered economic growth, starting in March. The reports helped propel Hong Kong’s Hang Seng Index
HK:HSI
5.2% higher and the Shanghai Composite Index
CN:SHCOMP
up 2.6%.

The U.S. markets also appeared to get a lift, as futures
ES00
for the S&P 500 index
SPX
advanced 0.9%.

Elsewhere, the U.S.-listed shares of Nio Inc.
NIO
hiked up 7.6% ahead of Tuesday’s open, after shedding 38.7% in October. That was the worst monthly performance since it plummeted 45.5% in September 2019.

Separately, XPeng said it obtained the Guangzhou Intelligent Connected Vehicle Road Test Permit for the XPENG G9, the first unmodified commercial vehicle to qualify for autonomous driving tests on public roads in China.

Nio reported Tuesday October deliveries of…

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