Why Li Auto Stock Soared 13% Today
Shares of electric-vehicle (EV) manufacturer Li Auto (NASDAQ: LI) exploded on Tuesday and was trading 10.8% higher as of 2 p.m. ET after hitting a day's high of 12.8%. Investors saw an opportunity to buy the EV stock after Monday's sell-off, backed by encouraging updates from China.
Several districts in China, including financial hub Shanghai, were under strict lockdowns for a couple of months or so amid surging COVID-19 cases. That hit the industrials sector particularly hard as companies were forced to suspend operations, with several automakers even postponing product launches and reporting a sharp dip in sales in recent weeks.
Factories in Shanghai, though, are now up and running -- 96.3% of industrial businesses in Shanghai tracked by the Chinese government have resumed operations, according to the latest update from China's Ministry of Industry and Information Technology. That means one less overhang for stocks of China-based auto companies listed in the U.S., including Li Auto.
Source Fool.com
