Chinese electric vehicle stocks Lee Auto Inc. . (NASDAQ:), NIO Inc. (NIO) and XPeng Inc. (NYSE:) jumped on Friday after Morgan Stanley analysts issued notes on the stock saying they expect the stock price to rise over the next 15 days.
As of 12:12 pm ET, LI shares were up 7%, NIO shares were up 9.2% and XPeng shares were up 10.7%.
The bank said the three stocks were “exploratory tactical ideas” and that it believed their share prices would “rise in absolute terms over the next 15 days.”
The stock has been on the decline lately. As a result, Morgan Stanley says this makes their short-term valuation “much more compelling.”
The firm also noted that on April 26, China’s Ministry of Commerce announced that it would offer subsidies of RMB 7k and RMB 10k to consumers who sell their old cars and buy corresponding ICEV or NEV models respectively, which the bank said is good bodes well for overall demand in the sector. .
Overall, the investment bank estimates there is a 70% to 80% chance (very likely) that the stock will rise in line with its expectations.