-- Shares of Hong Kong-listed Chinese electric vehicle stocks rose on Tuesday, led chiefly by a sharp rally in Li Auto Inc (HK:2015) (NASDAQ:LI) after the firm clocked stronger-than-expected earnings in the fourth quarter.
Shares of the EV maker jumped nearly 20% to HK$166.30- their highest level since August 2023. The stock was the top performer on the Hang Seng index, which fell 0.6%.
Li Auto’s Chinese EV peers also advanced, with HK shares of BYD (SZ:002594) Co Ltd (HK:1211), NIO Inc (HK:9866), and Xpeng (NYSE:XPEV) Inc (HK:9868) up between 1.2% and 2.5%.
Li Auto clocked a stronger-than-expected fourth quarter EPS of 4.23 yuan, topping estimates of 93 cents. The firm’s quarterly revenue also rose to 41.73 billion yuan, more than expectations of 39.8 billion yuan.
The strong results were driven chiefly by a surge in quarterly deliveries, which rose nearly three-fold from last year to 131,805 units.
Still, the firm forecast weaker-than-expected revenue and deliveries for the current quarter.
But the spike in fourth-quarter deliveries ramped up optimism over the health of Chinese EV demand, which has remained a key bright spot amid declining EV sales across the rest of the globe.
Li Auto’s results also signaled that the firm was weathering a severe price war better than initially expected. Aggressive price cuts by Tesla Inc (NASDAQ:TSLA) had triggered a bitter price war in Chinese EV markets over the past two years, which dented margins across the board.