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3 Chinese EV Stocks Popping After Upbeat Delivery Data

Options activity has exploded for NIO

Digital Content Manager
Jun 1, 2022 at 10:34 AM
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The shares of China-based electric vehicle (EV) companies Li Auto Inc (NASDAQ:LI), Nio Inc (NYSE:NIO), and Xpeng Inc (NYSE:XPEV) are all moving higher today, after each reported their May vehicle deliveries. The three EV concerns each saw their deliveries rise year-over-year, even after China saw strict lockdown measures enacted in recent weeks, amid a surge in Covid-19 cases. Below, we'll break down the stock movement of all three EV names, and take a broader look at the technical setup of LI, NIO, and XPEV. 

Li Auto stock was last seen up 2.7% to trade at $25.74, after the company's May deliveries of 11,496 represented a 166% pop from a year earlier. The stock has lost 21.9% this year, though today's positive price action should help it break above pressure from the 80-day moving average, as well as a ceiling at the $25.50 level.  

Moving on to Nio stock, the company announced May deliveries of 7,024 vehicles, which represents a 4.7% year-on-year rise. What's more, Nio reported an 11.8% increase for 2022, compared with the first five months of 2021. In response, NIO was last seen up 6.4% to trade at $18.51. On the charts, the 80-day moving average still sits well overhead, and the shares sport a 55% 12-month deficit. An overwhelming amount of bullish activity is occurring in the stock's options pits in response, with 44,000 calls exchanged so far -- three times the intraday average. New positions are being bought to open at NIO's most popular contract, the weekly 6/3 18.50-strike call. 

Finally, Xpeng stock was last seen 1.1% higher to trade at $23.75, after disclosing deliveries of 10,125 EVs last month -- a 78% year-over-year increase. Further, year-to-date deliveries more than doubled, compared to a year earlier. Like Nio stock, XPEV has faced pressure from a trendline since December, though the latter equity's 50-day moving average is the culprit in this case. The shares are bouncing from roughly 19-month lows, and sport a 53.3% deficit in 2022.

 
 

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