A recovery in car sales in China, and hopes that electric vehicles will become widely adopted, have powered a surge in Chinese auto stocks.
American depositary receipts in Nio Inc., China’s best-known company focusing solely on electric vehicles, have more than tripled this year.
Rival Li Auto Inc. raised $1.1 billion last month in a U.S. initial public offering and its shares have since gained 36%.
“People are looking for the next Tesla,” said Elizabeth Kwik, Asian equities investment manager at Aberdeen Standard Investments.
“With Tesla’s success, people now realize the very real potential of electric cars.”Giant property developer China Evergrande Group is turning subsidiary Evergrande Health Industry Group into a car maker.